Chevron Combustibles de México signs agreement with IEnova for use of Topolobampo terminal
IEnova, a Sempra Energy Company, through an affiliate, announced the execution of a long-term contract with Chevron Combustibles de México, S. de R.L. de C.V. for the storage and delivery of refined products, primarily gasoline and diesel, at the terminal for the receipt, storage, and delivery in Topolobampo, Sinaloa, Mexico.
The agreement will allow Chevron Combustibles de México S. de R.L. de C.V. to utilize approximately 50% of the terminal’s initial storage capacity. Additionally, another subsidiary of Chevron will have the right to acquire up to 25% of the equity of the terminal after commercial operations begin.
Chevron Combustibles de México S. de R.L. de C.V. is a subsidiary of Chevron Corp., which is one of the largest refiners on the U.S. west coast. The Topolobampo Terminal will allow Chevron to supply its growing network of Chevron retail fuel stations in Northwestern Mexico, as well as commercial and industrial consumers.
In addition, IEnova executed a second long-term contract for the storage and delivery of refined products with a large independent refiner in the U.S.A. Together, these two contracts represent 100% of the initial one million barrels of terminal storage capacity.
According to IEnova´s Chief Executive Officer Tania Ortiz Mena, “this is our fifth refined product terminal in Mexico, which is consistent with IEnova´s commitment to continue developing energy infrastructure that contributes to the country´s development, growth and competitiveness”.
IEnova will be responsible for all aspects of project implementation, including permitting, engineering, procurement, construction, financing, operations, and maintenance of the terminal. With an investment of approximately USD150 million, the terminal is expected to begin commercial operations in the last quarter of 2020.
The project will enhance supply options, improve logistics, and increase refined product supply reliability in the West Coast of Mexico, which will translate into benefits for consumers in the region.