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Valero adding 3 refined product terminals in Mexico

Valero Marketing and Supply de México, SA de CV, a subsidiary of Valero Energy, recently signed long-term agreements for the use of three new refined product terminals in Guadalajara, Monterrey, and Altamira, Mexico.

The company said the terminals, expected to start operations in 2021, will support its strategy to expand its product supply chain into high-growth markets.

The Guadalajara and Monterrey terminals are to be constructed under separate joint venture arrangements with no cash contributions from Valero; the Guadalajara terminal with an affiliate of Grupo México SAB de CV and Silos-Tysa, SA de CV, and the Monterrey terminal with an affiliate of Grupo México. Under the long-term terminal service agreements, the two terminals are designed to provide Valero with the capability to receive refined products via unit trains and truck loading facilities to serve regional and local markets. The Guadalajara terminal is expected to have approximately 900,000 barrels of storage capacity, while the Monterrey terminal is expected to have approximately 425,000 barrels of storage capacity.

The Altamira terminal, to be funded and constructed by Operadora de Terminales Marítimas, SA, Valero said, is designed to offer Valero access, under a long-term terminal service agreement, to a second port facility for imports of refined products. The terminal is expected to have approximately 1.1 million barrels of storage capacity, truck loading facilities to serve local market demand and rail services for distributing products to inland Mexican markets, including Monterrey.

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Valero is currently marketing products through a third-party terminal in Nuevo Laredo and through three rail-to-truck transload facilities in Guadalajara, Monterrey and Chihuahua, with plans to begin transloading products in Puebla starting in 2020. This marketing program is laying the groundwork for Valero’s supply chain expansion, the company said.

Valero said in August 2017 that it had signed long-term agreements for three refined product terminals in the Port of Veracruz, Puebla and Mexico City. All three are under construction and expected to begin serving customers in 2020. In addition, Valero separately executed a long-term agreement with rail company Ferromex, which is majority-owned by Grupo México, to transport refined products throughout Mexico.

The company said it expects the six new terminals, along with Ferromex rail transportation services from the port facilities in Veracruz and Altamira, to provide an integrated system of approximately 5.8 million barrels of storage capacity to efficiently and reliably supply four of the largest metropolitan areas in Mexico, as well as smaller fuel markets throughout the country that are under development.

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