A Sempra Energy subsidiary received a 20-year contract from a port in Sinaloa, Mexico, to build and operate a fuel terminal. Sempra (NYSE: SRE) made the announcement July 9.
The subsidiary, IEnova, is expected to invest approximately $150 million in the project. Sempra expects operations to begin in the fourth quarter of 2020.
The facility in Topolobampo, on the Gulf of California, will be able to ship and receive liquid fuels. The first phase will have a storage capacity of 1 million barrels of fuel, including gasoline and diesel fuel.
“The Topolobampo project will facilitate access to additional international fuel supplies and help meet growing demand in Mexico,” said Joseph Householder, Sempra’s president and chief operating officer, in a statement distributed by the company.
IEnova develops, builds and operates energy infrastructure in Mexico. It has more than 900 employees.
In Topolobampo, IEnova will be responsible for the development of the liquid fuels terminal, including financing, obtaining customer contracts and permits, engineering, procurement and construction, as well as maintenance and operations.
In a statement, Sempra said IEnova “has achieved significant commercial progress with potential customers and intends to contract for 100 percent of the terminal’s capacity.”
The terminal could be expanded to store more fuel or petrochemicals.