IEnova and Valero ink deals

The three liquid fuels projects represent an estimated capital investment of US$275 million. These facilities are IEnova's first ventures in Mexico's emerging US$10 billion liquids market.

Joseph A. Householder, Corporate Group President of infrastructure businesses for Sempra Energy, said: "These projects will lay a solid foundation for us to expand this new business line into additional terminal opportunities and liquids transportation investments […] We plan to continue to build our strategic relationships as projects such as these fit IEnova's and Sempra Energy's core competencies."

The company has also signed a 20-year concession agreement with the Port Authority of Veracruz to develop, construct and operate a receipt, storage and send-out liquid fuels marine terminal.

The Veracruz terminal will have a capacity of 1.4 million bbls of gasoline, diesel and jet fuel to supply the central region of Mexico. The two storage terminals to be built and operated by IEnova in Puebla and Mexico City will have initial storage capacities of approximately 500 000 bbls and 800 000 bbls, respectively.

IEnova will be responsible for the implementation of the projects, including permitting, engineering, procurement, construction, maintenance, financing and operations. It expects the two inland storage terminals to be put in service in 2019, and the marine terminal, at the end of 2018.

After commercial operations, and subject to all relevant regulatory and corporate authorizations, as well as the approval of the Port Authority of Veracruz, Valero will have the option to acquire 50% of the equity in all three assets.

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