IEnova signs long-term terminal services agreement with Marathon

TP Terminals, a joint venture between IEnova and Trafigura controlled by IEnova, has announced the execution of a long-term terminal services agreement with a subsidiary of Marathon Petroleum Corp. (MPC) for 650 000 bbl, approximately equivalent to 30% of the new capacity (2.2 million bbl) of the marine terminal for the receipt, storage, and delivery of gasoline, diesel and jet fuel in Manzanillo, Colima, Mexico.

The terminal will enable MPC to supply gasoline and diesel to its growing network of ARCO^® branded service stations in the country. This marine terminal will expand supply options, improve logistics and increase the reliability in the supply of refined products in the demand centres of Manzanillo, Colima as well as in Guadalajara, Jalisco, which will ultimately benefit consumers.

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 US$285 million, the terminal is expected to begin commercial operations, subject to the timing of issuance of the permits, in the 1Q21.

As previously announced, the remaining 70% of the terminal’s new capacity has been contracted with BP and Trafigura. Subject to executing certain agreements, BP and Trafigura will have the option to acquire up to 49% of the equity of the terminal. IEnova will always maintain at least 51% of the equity.

Currently, IEnova is constructing three terminals and has announced the development of four additional terminals, which is consistent with its commitment to position itself as a leader in refined product transportation and storage, as well as to contribute to the development of energy infrastructure in Mexico. This project demonstrates IEnova’s commitment to the development of necessary and critical infrastructure for Mexico, which is part of its strategic asset diversification plan.