Infraestructura Energética Nova (IEnova), the Mexican subsidiary of Sempra Energy has won contracts for liquid fuels projects in Mexico from a Valero Energy subsidiary.
The long-term contracts bagged by IEnova are for the storage capacity of the liquid fuels marine terminal to be built in Veracruz and a couple of inland storage facilities coming up in Puebla and Mexico City.
To be constructed with an investment of $275m, the three liquid fuels projects mark IEnova's foray in the Mexican liquids market.
Sempra Energy infrastructure businesses corporate group president Joseph A. Householder 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 Veracruz liquid fuels marine terminal, which will be built to supply the central region of Mexico, will have a capacity of 1.4 million barrels of gasoline, diesel and jet fuel.
On the other hand, the two storage terminals, which will be constructed and operated by IEnova in Mexico City and Puebla, will have initial storage capacities of nearly 800,000 barrels and 500,000 barrels respectively.
IEnova will also handle implementation of the projects. As part of it, the Sempra Energy subsidiary will take responsibility for securing permits, engineering, procurement, construction, maintenance, financing and also operations of the three liquid fuels projects.
The two inland storage terminals are expected to be commissioned in 2019, while the liquid fuels marine terminal will be put to service by 2018 end.
Valero will have the option to acquire 50% stake in the three assets once they begin commercial operations. However, it will be subject to all the regulatory and corporate approvals including the one from the Port Authority of Veracruz.