Valero Marketing and Supply de México, S.A. de C.V., an indirect
wholly-owned subsidiary of Valero Energy Corporation (NYSE:VLO)
(“Valero”), announced today that it has signed long-term agreements
with Infraestructura Energetica Nova, S.A.B. de C.V. (BMV:IENOVA)
(“IEnova”), to import refined products at the new Port of Veracruz.
In July, IEnova won the Port of Veracruz’s bid
for a 20-year concession to build and operate a new marine terminal
for the receipt, storage, and delivery of refined products.
IEnova executed the concession agreement today with the Port
Authority of Veracruz to develop, construct, and operate the
terminal.
The new terminal to be built by IEnova will have
approximately 1.4 million barrels of storage capacity. IEnova
will also build and operate two additional storage terminals,
strategically located near Puebla and Mexico City, which will have
initial storage capacities of approximately 500,000 and 800,000
barrels, respectively.
Valero has contracted with IEnova to use all
three terminals, to supply gasoline, diesel, and jet fuel to
customers. The marine terminal in Veracruz will start
operations as early as the end of 2018, with the two inland
terminals serving customers in early 2019. Valero will also
have an option to acquire a 50 percent interest in each of the
terminals.
“We are pleased to enter this relationship with
IEnova, a well-respected energy infrastructure company,” said Joe
Gorder, Valero Chairman, President and Chief Executive Officer.
“With the recent Constitutional reform, it is now possible
for Valero to import refined products directly into Mexico for
further distribution, including branded sales. This
transaction will enable us to extend our supply chain to
efficiently supply gasoline, diesel and jet fuel to the growing
Mexican market. As we continue to evaluate ways to further engage
in Mexico, we look forward to discussing opportunities with Pemex
that advance our respective strategic objectives, as well as
discussing supply arrangements with independent retail operators.”
Carlos Ruiz Sacristán, CEO and Chairman of the
Board of IEnova, stated that “with this transaction, we demonstrate
IEnova’s ability to continue adding new business segments to our
portfolio while maintaining our solid business strategy.
Mexico will require important investments in the
transportation and storage of refined products in the next years,
and IEnova is ideally positioned to become a leader.”
In addition, Valero separately executed a
long-term agreement with rail company Ferromex S.A. de C.V., which
is majority-owned by Grupo México S.A.B. de C.V. (BMV:GMEXICOB), to
transport refined products from Veracruz to the inland terminals
via unit trains.
“This agreement reflects a clear opportunity to
create new fuels transportation alternatives and improve logistic
efficiencies in Mexico,” said Fernando Lopez, Ferromex Chief
Marketing Officer. “Ferromex has more than 10 years of
experience moving fuels through our network. We are excited
to provide the significant security and flexibility of our rail
services to a new customer like Valero in a growing Mexican fuels
market.”
About Valero Valero Energy
Corporation, through its subsidiaries, is an international
manufacturer and marketer of transportation fuels and other
petrochemical products. Valero, a Fortune 50 company based in
San Antonio, Texas, with approximately 10,000 employees, is an
independent petroleum refiner and ethanol producer, and its assets
include 15 petroleum refineries with a combined throughput
capacity of approximately 3.1 million barrels per day and
11 ethanol plants with a combined production capacity of
1.4 billion gallons per year. The petroleum refineries
are located in the United States (U.S.), Canada and the United
Kingdom (U.K.), and the ethanol plants are located in the
Mid-Continent region of the U.S. In addition, Valero owns the
2 percent general partner interest and a majority limited partner
interest in Valero Energy Partners LP, a midstream master limited
partnership. Valero sells its products in both the wholesale
rack and bulk markets, and approximately 7,400 outlets carry
Valero’s brand names in the U.S., Canada, the U.K. and
Ireland. Please visit www.valero.com for more
information.
About IEnova IEnova, a Sempra
Energy company, develops, constructs, and operates energy
infrastructure in Mexico. With nearly 900 employees and more
than $7 billion U.S. dollars invested in the country, its presence
spans various lines of business within the Mexican energy value
chain. IEnova is the first and only energy infrastructure
company to be listed on the Mexican stock exchange, and it is the
only energy company to be part of the IPC Sustainability Index.
About Grupo México and
FerromexGMXT, through its subsidiary Ferromex, is the
largest rail transportation company in Mexico, with more than 6,200
miles (10,000 km) of rail track covering all major industrial and
commercial zones in the country, connecting to international
transportation networks through eight seaports and six border
crossings, and handling just over 1.4 million carloads per year.
GMXT’s rail lines cover 24 states in Mexico, and the states
of Texas and Florida in the U.S.
Valero ContactsInvestors:John
Locke, Vice President – Investor Relations, 210-345-3077Karen Ngo,
Senior Manager – Investor Relations, 210-345-4574Tom Mahrer,
Manager – Investor Relations, 210-345-1953
Media:Lillian Riojas, Director – Media Relations
and Communications, 210-345-5002
Mexico Marketing:Andres Martinez del Rio –
Director Wholesale Marketing,
210-345-2137VentasValeroMexico@valero.com
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