Valero Marketing and Supply de México, S.A. de C.V., a wholly-owned subsidiary of Valero Energy Corporation (Valero), announced that it has signed long-term agreements for the use of three new refined product terminals located in Guadalajara, Monterrey, and Altamira, Mexico. These terminals will support Valero’s strategy to expand its product supply chain into high growth markets and are expected to start operations in 2021.
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 S.A.B. de C.V. (BMV: GMEXICOB) (Grupo México) and Silos-Tysa, S.A. de C.V. (Silos-Tysa) 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, S.A. de C.V. (OTM), 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.
