Sempra Energy (SRE) announced that its Mexican subsidiary, Infraestructura Energetica Nova, S.A.B. de C.V. (IEnova), has signed a long-term contract with British Petroleum (BP) for the remaining 50 percent of the initial capacity of the proposed Baja Refinados liquid fuels marine terminal in Baja California, Mexico.
Under the agreement, BP will have storage capacity of 500,000 barrels of liquid fuels to supply its growing network of service stations in northern Mexico. In addition, subject to the execution of certain agreements, BP will have the option to acquire up to 25 percent of the terminal's equity after commercial operations begin in the second half of 2020.
In April, IEnova announced it signed a long-term contract with Chevron Combustibles de México S. de R.L. de C.V for approximately 50 percent of the facility's initial storage capacity to supply Chevron service stations and other commercial and industrial consumers.
"The Baja Refinados project is an important part of our growth strategy," said Carlos Ruiz Sacrist?n, chairman and CEO of the Sempra North American Infrastructure group and chairman of IEnova. "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."
IEnova will be responsible for the development of the liquid fuels terminal project, including financing, obtaining permits, engineering, procurement and construction, as well as maintenance and operations. The project will be located at the La Jovita Energy Hub in Ensenada and have an initial capacity of 1 million barrels of liquid fuels, with the potential for future expansion.
IEnova develops, builds and operates energy infrastructure in Mexico. As of the end of 2017, the company had invested more than U.S.$7.6 billion in operating assets and projects under construction in Mexico, making it one of the largest private energy companies in the country. IEnova was the first energy infrastructure company to be listed on the Mexican Stock Exchange.
Sempra Energy announced in August that it formed a new operating group, Sempra North American Infrastructure. The new group's operations include IEnova, as well as Sempra LNG & Midstream development and marketing activities.
Sempra Energy, a San Diego-based energy services holding company with 2017 revenues of more than $11 billion, is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' approximately 20,000 employees serve more than 40 million consumers worldwide.