SAN ANTONIO--(BUSINESS WIRE)--Howard Midstream Energy Partners, LLC (HEP) announced today that it has executed a long-term terminal services agreement (TSA) with a third-party shipper and plans to significantly expand its bulk liquids terminal facility in Port Arthur, Texas. Under the TSA, HEP will construct or install more than 15 new tanks adding more than 1 million barrels of storage for a variety of products, and construct new marine facilities for both blue water and inland marine vessels. Additionally, the company plans to construct a pipeline system to transport products between the HEP’s Port Arthur facilities and other third-party supply points.
Permitting for the development of the Port Arthur Terminal began in the first quarter of 2016; final engineering of the facilities and pipelines is underway and construction is expected to begin in March. The facility is projected to take 18 months to construct and operations are expected to begin in 2018. If warranted by future demand, HEP’s Port Arthur Terminal can be expanded to include up to 24 million barrels of storage, and multiple blue water and inland marine docks.
“HEP's Port Arthur facility is uniquely positioned to provide an efficient solution for shippers seeking alternatives to Houston facilities that continue to experience high volumes of marine traffic and subsequent demurrage,” said HEP Senior Vice President of Terminals and Transportation, Mark Helmke. “Our proximity to over 1.4 million barrels of local refining capacity and significant refined product pipeline infrastructure, such as Explorer Pipeline and Colonial Pipeline, make this terminal a logical clearinghouse for refined products.”
"This transaction is a significant step for HEP as it expands and diversifies its business in the North American market. Our Port Arthur facility, with its material expansion opportunities, is a key component of our strategy of building and growing a diversified midstream company focused on long term value creation,” said HEP Co-Founder and President, Brad Bynum.
HEP’s 450-acre Port Arthur facility sits only 13 miles off the Gulf of Mexico and provides access to numerous refineries, chemical plants and nearby pipelines. The site currently includes more than eight miles of rail with a unit-train loop track and railcar loading/unloading facilities, four storage tanks with a total capacity of 230,000 barrels, and more than 3,000 feet of deep-water frontage.
About Howard Energy Partners
San Antonio-based Howard Midstream Energy Partners, LLC dba Howard Energy Partners is an independent midstream energy company, owning and operating natural gas gathering and transportation pipelines, natural gas liquids processing plants, rail facilities, liquid storage terminals, deep-water port facilities and other related midstream assets in Texas and Pennsylvania. The company has corporate offices in San Antonio, Houston and Mexico City. For more information on Howard Energy Partners, please visit our website www.howardenergypartners.com.