IEnova, Sempra Energy’s Mexican subsidiary and Trafigura have executed a long-term terminal services agreement for 740,000 barrels of storage capacity of a marine facility for the receipt, storage and delivery of refined products in Manzanillo, Colima.
Both companies entered into a Joint Venture Agreement governing the development, construction, and operation of the project. IEnova will have control over all aspects of project implementation, including finalising permits, securing customers for the additional capacity, and completing detailed engineering, procurement, construction, financing, operation and maintenance of the terminal.
The project’s estimated investment is approximately $200m, and the company anticipates, subject to the timing of issuance of the remaining permits, the start of commercial operations at the end of 2020. The project scope includes a marine terminal for the receipt, storage and delivery of refined products.
The terminal will be capable of loading refined products onto rail and trucks, which will enable its customers to supply fuels to demand centres in the Manzanillo, Colima area as well as in Guadalajara, Jalisco, which is the second largest demand centre in Mexico. It is estimated that the initial phase of the terminal will have a storage capacity of 1.48 million barrels with opportunities for expansion.
As part of the agreements, IEnova also acquired 51% of the equity of the company whose subsidiary owns certain permits and land where, subject to the issuance of the remaining permits and other conditions, the project will be built. Affiliates of Trafigura retained 49% of the equity of the project.
For more information visit: www.ienova.com.mx
3rd October 2018
