In April 2021, the Company completed its acquisition of two operating liquid storage terminals with a combined capacity of 525,000 barrels in the Port of Brownsville on the Texas gulf coast, for a total purchase price of US$63m.

In Mexico, vehicles are burning fuel with high sulfur content, resulting in the creation of significant PM2.5 air pollution and causing health problems, particularly in highly populated areas such as Mexico City. The same fuel is also being used in power generation close to large populated areas where the power is being consumed.

The US terminal assets aim to reduce the environmental and health threats that high sulfur fuels have on human health by reducing the availability of high sulfur fuel oil for domestic consumption in Mexico and displacing it with cleaner less pollutive products, reducing PM2.5, SO2, and NO2 emissions. The US terminal assets provide an aggregation point and facilitate the transfer of high sulfur oil currently produced at a surplus in the Mexican fuel market. As a result of the terminals’ proximity, northbound flows are destined for greater and more efficient refining capacity in the United States. Once refined the PM2.5 contribution of the fuels is reduced materially to levels experienced in Europe and the United States.

The operating partner is Motus Energy LLC, which combines the team that built and operated the assets for the previous owner and an established cross-border fuel exporter.

The two terminal sites have a useful life of 30 years.

Since its acquisition, we have:

Added capabilities by switching to 24/7 operation, increasing the volumes we had been handling

Extended existing contracts at higher rates and optimised ancillary services revenues been working closely with our operating partner Motus Energy LLC to expand the storage capacity of the terminals

Worked closely with our operating partner to expand the storage capacity of the terminals