In this regard, BP has signed a long-term contract to have 500,000 barrels of liquid fuels storage capacity in the Baja Refinados terminal, which is being built at the La Jovita Energy Hub in Ensenada.

The oil and gas giant will use the storage capacity in the Baja Refinados liquid fuels marine terminal to supply its service stations across northern Mexico. Apart from the storage contract, the company, based on signing of certain agreements, will also have an option to buy up to 25% stake in the Mexican liquid fuels marine terminal once it commences operations in the second half of 2020.

The initial storage capacity of the Baja Refinados liquid fuels terminal will be one million barrels of gasoline and diesel that is expected to boost the fuel supply capacity and reliability in Baja California. The terminal has been designed to enable future expansion to accommodate more storage.

IEnova is handling the development of the Mexican liquid fuels terminal project. Among its responsibilities are pursuing permits, execution of engineering, procurement, construction and financing, and also maintenance and operations.

Sempra North American Infrastructure group chairman and CEO and IEnova chairman Carlos Ruiz Sacristán said: “The Baja Refinados project is an important part of our growth strategy.

“This new terminal will increase Baja California’s energy reliability and will foster competitive prices for gasoline and other refined products on the West Coast of Mexico.”

The remaining 50% or so capacity of the Baja Refinados liquid fuels marine terminal will be utilized by Chevron Combustibles de México under a long-term contract signed in April.

The Chevron subsidiary will be supplying the fuels to its service stations and other commercial and industrial consumers in Baja California and had been given the option to buy a stake of 20% of the liquid fuels marine terminal upon its commissioning.