Pipeline 9
Howard Midstream Energy Partners LLC has executed a long-term terminal service agreement with a third-party shipper to significantly expand its bulk liquids terminal facility in Port Arthur, Texas. Under the TSA, HEP will construct more than 15 new tanks, adding more than 1 million barrels of storage for a variety of products. Additionally, the company plans to construct new marine facilities for both blue water and inland marine vessels and a new pipeline system to transport products between 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. At press time, construction was 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 Mark Helmke, HEP senior vice president of terminals and transportation. “Its 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.”
The site includes more than eight miles of rail with a unit-train loop track, railcar loading and unloading facilities, four storage tanks with a total capacity of 230,000 barrels and more than 3,000 feet of deepwater frontage.
