Energy giant BP signed a long-term contract with IEnova, Sempra Energy’s subsidiary in Mexico, to utilize the remaining 50 percent of storage capacity at a $130 million liquid fuels marine terminal to be built near Ensenada.
Under the agreement announced Tuesday afternoon, BP will have storage capacity of 500,000 barrels of liquid fuels to supply BP’s growing number of gas stations in northern Mexico.
Earlier this year, IEnova reached a long-term agreement with a local unit of Chevron to utilize about half the terminal’s capacity. Like BP, Chevron has moved into Mexico’s fuel sector in recent years, supplying service stations and other commercial and industrial customers.
Called Baja Refinados, the project is expected to be completed in the second half of 2020. The terminal will be constructed at IEnova’s La Jovita Energy Center, which includes the company’s Energía Costa Azul liquefied natural gas facility.
"The Baja Refinados project is an important part of our growth strategy," Carlos Ruiz Sacristán, chairman and CEO of the Sempra North American Infrastructure group and chairman of IEnova, said in a statement. "This new terminal will increase Baja California's energy reliability and will foster competitive prices for gasoline and other refined products on the West Coast of Mexico."
BP will have the option to acquire up to 25 percent of the terminal’s equity after commercial operations begin.
IEnova is responsible for developing the terminal, including its financing, construction, permitting as well as maintenance and operations.
Sempra management considers IEnova a crucial piece of its North American portfolio and its subsidiary has become an aggressive player in the expanding Mexican energy sector.
IEnova has invested more than $7.6 billion in U.S. dollars in assets and projects and boasts of being the first energy infrastructure company listed on the Mexican stock exchange.
In addition to liquid fuels, IEnova develops and operates investments in solar, wind and natural gas projects across Mexico.
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