July 17, 2017 [OPIS] - The Port Authority of Veracruz in Mexico (API Veracruz) has awarded the partial, 20-year transfer of its concession rights to IEnova S.A.B. de C.V. for the purpose of building and operating a marine terminal for liquid fuels, the Sempra Energy company said Wednesday.
Currently in final negotiations to contract terminal services with third parties, IEnova said in a statement that fuels to be stored at the proposed 1.4-million-bbl facility will be primarily gasoline, diesel and jet fuel. It is expected to begin operations during 2018.
The company offered API Veracruz 1 billion pesos, or about $55 million, as the initial fee. As previously reported by OPIS, the offer was the highest of three bids under consideration. The other bidders were Avant and a consortium led by Vitol.
According to IEnova, its initial investment in the project will be $155 million. It is expected to directly generate nearly 500 jobs and indirectly another 2,000 during construction. Project implementation by IEnova includes obtaining permits; performing engineering, procurement, construction, operation, maintenance, financing and providing services.
The new terminal will provide the center region of Mexico access to international refined product sources “which will strengthen the logistics chain and serve increasing fuel demand,” IEnova said.
The Sempra Energy unit develops, constructs and operates energy infrastructure in Mexico. Its various lines of business span the Mexican energy value chain, including several natural gas pipelines and an ethane pipeline. IEnova is the first and only energy infrastructure company to be listed on the Mexican stock exchange.
The Veracruz port terminal is to be built on an area of 123,000 square meters (about 1.324 million square feet), and include products pipeline transfer capability to the port’s future logistics area. The tender also called for the construction of a public pier to handle the terminal’s cargo.
Expansion of the port (estimated to cost 30 billion pesos, or $1.6 billion) entails the construction of three other terminals: mineral bulk, bulk agricultural goods, and liquids or semi-liquid bulk agricultural derivatives. Tenders for those facilities have been launched.
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