Howard Midstream Energy Partners, LLC (HEP) has announced 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 bbls 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 (1Q16); 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 bbls 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 bbls 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 bbls, and more than 3000 ft of deep-water frontage.
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