SAN DIEGO, Aug. 3, 2017 /PRNewswire/ -- Sempra Energy
(NYSE: SRE) today announced that its Mexican subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) (BMV: IENOVA),
signed long-term contracts with a subsidiary of Valero Energy Corp. for the storage capacity of the liquid fuels marine terminal
to be constructed in Veracruz and two inland storage facilities to be constructed in
Puebla and Mexico City.
The three liquid fuels projects represent an estimated capital investment of U.S. $275 million.
These facilities are IEnova's first ventures in Mexico's emerging $10
billion liquids market.
"These projects will lay a solid foundation for us to expand this new business line into additional terminal opportunities and
liquids transportation investments," said Joseph A. Householder, corporate group president of
infrastructure businesses for Sempra Energy. "We plan to continue to build our strategic relationships as projects such
as these fit IEnova's and Sempra Energy's core competencies."
The 20-year concession agreement with the Port Authority of Veracruz awarded last month to
develop, construct and operate a receipt, storage and send-out liquid fuels marine terminal also was signed today.
The Veracruz terminal will have a capacity of 1.4 million barrels of gasoline, diesel and jet
fuel to supply the central region of Mexico. The two storage terminals to be built and operated
by IEnova in Puebla and Mexico City will have initial storage
capacities of approximately 500,000 barrels and 800,000 barrels, respectively.
IEnova will be responsible for the implementation of the projects, including permitting, engineering, procurement,
construction, maintenance, financing and operations. IEnova expects the two inland storage terminals to be put in service in
2019, and the marine terminal, at the end of 2018.
After commercial operations, and subject to all relevant regulatory and corporate authorizations, as well as the approval of
the Port Authority of Veracruz, Valero will have the option to acquire 50 percent of the equity
in all three assets.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2016
revenues of more than $10 billion. The Sempra Energy companies' more than 16,000 employees serve
approximately 32 million consumers worldwide.
This press release contains statements that are not historical fact and constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like
"believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "assumes," "depends,"
"should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "target," "pursue,"
"outlook," "maintain," or similar expressions or discussions of guidance, strategies, plans, goals, opportunities, projections,
initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks,
uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking
statements.
Factors, among others, that could cause actual results and future actions to differ materially from those described in
forward-looking statements include: actions and the timing of actions, including decisions, new regulations, and issuances of
permits and other authorizations by the California Public Utilities Commission, U.S. Department of Energy, California Division of
Oil, Gas, and Geothermal Resources, Federal Energy Regulatory Commission, U.S. Environmental Protection Agency, Pipeline and
Hazardous Materials Safety Administration, Los Angeles County Department of Public Health, states, cities and counties, and other
regulatory and governmental bodies in the United States and other countries in which we operate;
the timing and success of business development efforts and construction projects, including risks in obtaining or maintaining
permits and other authorizations on a timely basis, risks in completing construction projects on schedule and on budget, and
risks in obtaining the consent and participation of partners; the resolution of civil and criminal litigation and regulatory
investigations; deviations from regulatory precedent or practice that result in a reallocation of benefits or burdens among
shareholders and ratepayers; modifications of settlements; delays in, or disallowance or denial of, regulatory agency
authorizations to recover costs in rates from customers (including with respect to regulatory assets associated with the San
Onofre Nuclear Generating Station facility and 2007 wildfires) or regulatory agency approval for projects required to enhance
safety and reliability; the availability of electric power, natural gas and liquefied natural gas, and natural gas pipeline and
storage capacity, including disruptions caused by failures in the transmission grid, moratoriums or limitations on the withdrawal
or injection of natural gas from or into storage facilities, and equipment failures; changes in energy markets; volatility in
commodity prices; moves to reduce or eliminate reliance on natural gas; the impact on the value of our investment in natural gas
storage and related assets from low natural gas prices, low volatility of natural gas prices and the inability to procure
favorable long-term contracts for storage services; risks posed by actions of third parties who control the operations of our
investments, and risks that our partners or counterparties will be unable or unwilling to fulfill their contractual
commitments; weather conditions, natural disasters, accidents, equipment failures, computer system outages, explosions,
terrorist attacks and other events that disrupt our operations, damage our facilities and systems, cause the release of
greenhouse gases, radioactive materials and harmful emissions, cause wildfires and subject us to third-party liability for
property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in
excess of applicable policy limits) or may be disputed by insurers; cybersecurity threats to the energy grid, storage and
pipeline infrastructure, the information and systems used to operate our businesses and the confidentiality of our proprietary
information and the personal information of our customers and employees; capital markets and economic conditions, including the
availability of credit and the liquidity of our investments; fluctuations in inflation, interest and currency exchange rates and
our ability to effectively hedge the risk of such fluctuations; changes in the tax code as a result of potential federal tax
reform, such as the elimination of the deduction for interest and non-deductibility of all, or a portion of, the cost of imported
materials, equipment and commodities; changes in foreign and domestic trade policies and laws, including border tariffs,
revisions to favorable international trade agreements, and changes that make our exports less competitive or otherwise restrict
our ability to export; the ability to win competitively bid infrastructure projects against a number of strong and aggressive
competitors; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of
San Diego Gas & Electric Company's (SDG&E) electric transmission and distribution system due to increased amount and
variability of power supply from renewable energy sources; the impact on competitive customer rates due to the growth in
distributed and local power generation and the corresponding decrease in demand for power delivered through SDG&E's electric
transmission and distribution system and from possible departing retail load resulting from customers transferring to Direct
Access and Community Choice Aggregation or other forms of distributed and local power generation, and the potential risk of
nonrecovery for stranded assets and contractual obligations; and other uncertainties, some of which may be difficult to predict
and are beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and
Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website,
www.sec.gov , and on the company's website
at www.sempra.com . Investors
should not rely unduly on any forward-looking statements. These forward-looking statements speak only as of the date
hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking
statements, whether as a result of new information, future events or otherwise.
Sempra South American Utilities, Sempra Infrastructure, Sempra LNG & Midstream, Sempra Renewables, Sempra Mexico and
Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same as the California Utilities, San Diego Gas &
Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and are not regulated by the California Public
Utilities Commission.
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SOURCE Sempra Energy