Howard Energy Partners (HEP) announced a long-term agreement with Diamond Green Diesel (DGD), which includes a 50/50 joint venture between Valero Energy Corporation and Darling Ingredients Inc., and plans to significantly expand its Port Arthur, Texas terminal facilities. The expansion is in order to support DGD's recently announced plant, a 470-million-gallon-per-year renewable diesel production facility to be located at Valero’s Port Arthur refinery.
Engineering, permitting, and construction on HEP’s Port Arthur facility expansion has begun, with an in-service date coinciding with the startup of DGD’s new plant.
HEP will provide DGD with logistic solutions for renewable diesel feedstock and finished product through the construction of 575,000 barrels of tank storage, three pipelines and associated connections to Valero’s Port Arthur refinery, seven miles of rail track and associated rail unloading/loading facilities, truck unloading facilities, and a Panamax-class-capable deep-water dock. The new facilities are being designed to handle multiple products and have additional capacity for third-party shippers.
Once this expansion is complete, HEP’s Port Arthur facility will consist of 1.9 million barrels of refined product storage capacity, 16 miles of rail track with unit train and manifest service from two railroads, three barge docks, two ship docks, and pipeline connectivity to local refiners and major refined product distribution hubs.
“We are excited to work with both Valero and Darling to support their new renewable diesel production facility and help bring this sustainable, clean-burning fuel to market,” said Rod Pullen, vice president of business development and asset optimization for HEP. “This significant expansion of our strategically located Port Arthur terminal illustrates the facility’s extensive footprint and capacity to grow and meet the needs of moving feedstock and refined products throughout the Gulf Coast market. We look forward to additional future development, continuing our commitment to building infrastructure projects that bring long-term and repeatable value to our investors.”
“Howard Energy Partners’ long-term contract with Diamond Green Diesel provides DGD with a competitive advantage in the production and distribution of renewable diesel around the world,” said John Bullock, executive vice president, chief strategy officer for Darling Ingredients. “We firmly believe the greater the flexibility of your supply chain, the better you can react to the changing dynamics, as the demand for renewable diesel continues to strengthen. We believe this agreement significantly enhances our raw material sourcing of feedstock as well as provides for better finished product marketing and distribution when the DGD Port Arthur facility commences production in the second half of 2023. We are fortunate to have a growth-oriented company like HEP in Port Arthur to team up with on this project and we look forward to our long-term relationship.”
