SAN ANTONIO, Aug. 03, 2017 (GLOBE NEWSWIRE) -- 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 Ferromex
GMXT, 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 Contacts
Investors:
John Locke, Vice President – Investor Relations, 210-345-3077
Karen Ngo, Senior Manager – Investor Relations, 210-345-4574
Tom 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, 210-345-2137
VentasValeroMexico@valero.com
