Valero Marketing and Supply de Mexico, S.A. de C.V., an indirect wholly owned subsidiary of Valero Energy Corp., has signed long-term agreements to directly supply refined products into northern Mexico. The refined products will be supplied from the company’s Corpus Christi and Three Rivers, Texas, US, refineries via a pipeline and terminal expansion in Nuevo Laredo, Mexico.
This transaction enhances Valero’s existing infrastructure for supplying northern Mexico and improves the efficiency of fuel delivery into this area. The company expects to begin delivering products through this expanded facility by the end of the year. “This agreement is another step in our strategy to extend Valero’s supply chain,” said Gary Simmons, Senior Vice President Marketing and Supply.
“This transaction combined with our agreements to supply central Mexico demonstrates our commitment to efficiently supply gasoline and diesel to the growing Mexican markets and will further strengthen our distribution presence, including branded sales.”
In August 2017, Valero announced a long-term agreement with IEnova to import refined products at the new Port of Veracruz and distribute into central Mexico. IEnova won the Port of Veracruz’s bid for a 20-year concession to build and operate a new terminal with 1.4 million bbls of storage capacity, which has since expanded to 2.1 million bbls. In addition, IEnova is building two inland storage terminals strategically located near Puebla and Mexico City that will be supplied by rail. Valero has exclusive use of all three terminals. IEnova expects the Veracruz terminal to start operations by the end of 2Q19, with the inland terminals coming online in 3Q19.
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