IEnova and Valero sign import and storage deal

Infraestructura Energética Nova (IEnova) and Valero Energy have signed a contract for the receipt, storage and delivery of hydrocarbons at several storage terminals, the Sempra Energy subsidiary said Thursday in a press release.

Under the deal, IEnova will receive refined products at its 1.4-million-barrel marine storage terminal in Veracruz from Valero’s refineries in the USA.

“With the recent Constitutional reform, it is now possible for Valero to import refined products directly into Mexico for further distribution, including branded sales,” said Valero chairman, president and CEO Joe Gorder in a company statement. “This transaction will enable us to extend our supply chain to efficiently supply gasoline, diesel and jet fuel to the growing Mexican market.”

On Thursday, IEnova also signed a 20-year contract with the Port of Veracruz to construct and operate a USD 155-million refined products storage terminal. The project was awarded in July and is scheduled for completion in 2018.

Additionally, the agreement will see IEnova construct two onshore terminals near Mexico City and Puebla with storage capacities of 800,000 barrels and 500,000 barrels, respectively. The combined price tag of these two terminals, whose capacities are also contracted to Valero, is USD 120 million.

These facilities, which are expected to be operational by early 2019, will be linked to the Veracruz marine terminal by rail and truck.

“With this transaction, we demonstrate IEnova´s ability to continue adding new business lines to our portfolio while maintaining our solid business strategy,” IEnova CEO and chairman Carlos Ruiz Sacristán said in a company statement. “Mexico will require important investments in the transportation and storage of refined products in the next years, and IEnova is ideally positioned to become a leader.”

The IEnova press release said that Valero would be eligible to take on 50% interests in the three terminals.