Valero Marketing and Supply de México has signed long-term agreements for the use of three new refined product terminals in Guadalajara, Monterrey, and Altamira, Mexico.
These terminals will support Valero's strategy to expand its product supply chain into high growth markets and are due to start operations in 2021.
The Guadalajara and Monterrey terminals will be built under separate joint venture arrangements with no cash contributions from Valero. Under the long-term terminal service agreements, the two terminals are designed to provide Valero with the capability to receive refined products via unit trains and truck loading facilities to serve regional and local markets. The Guadalajara terminal is expected to have 900,000 barrels of storage capacity while the Monterrey terminal is expected to have 425,000 barrels of storage capacity.
The Altamira terminal, which will be funded and constructed by Operadora de Terminales Maritimas, will offer Valero access, under a long-term terminal service agreement, to a second port facility for imports of refined products. The terminal is expected to have 1.1 million barrels of storage capacity, truck loading facilities to serve local market demand and rail services for distributing products to inland Mexican markets, including Monterrey.
Currently, Valero is marketing products through a third-party terminal in Nuevo Laredo and through three rail-to-truck transload facilities located in Guadalajara, Monterrey, and Chihuahua with plans to begin transloading products in Puebla starting in 2020. This marketing programme is laying the groundwork for Valero's supply chain expansion.
Valero signed long-term agreements in 2017 for three refined product terminals located in the Port of Veracruz, Puebla and Mexico City. All three are expected to begin serving customers in 2020.
The six new terminals, along with the Ferromex rail transportation services from the port facilities in Veracruz and Altamira, will provide Valero with an integrated system of 5.8 million barrels of storage capacity to supply four of the largest metropolitan areas in Mexico as well as smaller fuel markets throughout the country that are under development.