IEnova to construct Mexico’s first private fuel terminal

IEnova will construct a marine hydrocarbons terminal in the Port of Veracruz, the company announced Wednesday.

A local subsidiary of US gas company Sempra Energy, IEnova was granted a 20-year contract by the Veracruz Port Administration to build the USD 155-million fuel storage facility. The terminal, which will be designed to store up to 1.4 million barrels of petrol, diesel and jet fuel, is scheduled to begin operating in the second half of 2018.

The terminal will allow Mexico to boost its fuel import and storage capacity. Fuel stored at this facility is intended to be distributed in the country’s central region.

“This project represents an exciting new market entry for IEnova in Mexico,” said Joseph A. Householder, Sempra Energy corporate group president of infrastructure businesses.

“IEnova continues to position itself strategically to help develop Mexico’s energy infrastructure.”

Before starting work on the project, the company will obtain financing and permits, in addition to providing EPC works. Once the terminal comes on stream, IEnova will operate and maintain the facility.

The terminal’s construction is expected to result in the direct employment of 500 workers and create 2,000 additional indirect positions.

The project is the first fuel storage terminal to be awarded to a private company since Mexico passed legislation in 2014 to liberalise its hydrocarbons industry.