Howard Energy Partners completes US$800 million worth of growth projects

The company also achieved record volumes in 2023, with current average natural gas throughput of over 2.5 billion ft³/d and current average terminalling throughput of more than 160 000 bbl/d, representing a 7% and 25% increase in volumes over 2022, respectively. The expansion projects and associated ongoing 24/7 operations were completed while achieving a perfect safety record to date in 2023.

“This has been a milestone year for Howard Energy Partners. We are extremely pleased to have successfully completed several strategic growth projects that substantially increase our ability to help customers move their products to market,” said Mike Howard, HEP Chairman and CEO. “As we look to 2024, our strong liquidity position of nearly US$1 billion will allow us the ability to quickly execute on new opportunities and continue our strong growth trajectory.”

South Texas expansion

HEP, as the operator of the Dos Cominos joint venture with NextEra Energy, completed its new South Texas natural gas pipeline and facility expansion in early November, one month ahead of schedule. The Spears project includes a 62 mile, 36 in. pipeline and significant associated treating and compression facilities, providing HEP’s South Texas customers the ability to transport up to 1 billion ft³/d of incremental natural gas volumes to growing Gulf Coast LNG facilities where demand is forecasted to increase 152% by 2050. This expansion represents the largest domestic pipeline project in the company’s history and was built in response to the LNG market’s growing demand for low-nitrogen natural gas from the Eagle Ford shale play of Webb County, Texas, US.

Port Arthur Terminal expansion

HEP completed significant expansion projects at its 450 acre terminal facility in Port Arthur, Texas, to support Diamond Green Diesel’s new 470 million gal./y renewable diesel production facility located at Valero’s Port Arthur refinery. The expansion included a second deep-water dock with additional capacity available for third-party shippers.

HEP also commissioned new facilities to handle Refinery Grade Propylene and Polymer Grade Propylene including rail transloading spots, pressurised storage, and associated pipelines and pumps to connect the terminal to one of the world’s leading chemical companies.

Upon completion of all Port Arthur expansion projects, HEP’s facility consists of nearly two million bbl of storage, 16 miles of rail track with unit train and manifest service from two railroads, three barge docks, two deep-water docks capable of loading panamax-class vessels, and pipeline connectively to local refiners and industrial plants.

Delaware Basin expansion

HEP, as the operator of the Catalyst Midstream Partners (Catalyst) joint venture, completed its 200 million ft³/d Train 3 expansion of the Stateline natural gas processing complex in Orla, Texas, increasing total processing capacity to over 600 million ft³/d. The expansion project positions Catalyst as a major aggregator of natural gas and associated natural gas liquids in the highly coveted Stateline region of the Delaware Basin.

Safety and ESG achievements

HEP completed these major expansion projects with zero recordable incidents or preventable vehicle accidents. Over the last three years, HEP achieved zero recordable incidents with more than two million man hours worked and zero preventable vehicle accidents with more than 5.8 million miles driven during this time period.

In 2023, HEP was also awarded GRESB’s five-star ESG rating, a top-tier classification that the company has achieved for the second year in a row. This recognition, combined with the safety excellence awards from the GPA Midstream Association and the International Liquids Terminal Association, builds on HEP’s industry-leading track record of ESG and safety performance.

“While deploying US$800 million of expansion projects is an integral part of our strategic growth plan, prioritising safety and operational excellence is equally important,” said Howard. “As we continue to create long-term value for our investors and customers, our diverse capabilities and strong operational footprint positions us as a sought-after midstream partner.”

Read the article online at: https://www.tanksterminals.com/terminals/19122023/howard-energy-partners-completes-us800-million-worth-of-growth-projects/