Howard Midstream Energy Partners’ subsidiary, Dos Águilas, LLC, plans to permit, construct and operate the proposed Dos Águilas project, an open access system of refined products terminals and pipelines spanning from Corpus Christi, TX to northern Mexico.
The Dos Águilas project will offer direct transportation services for gasoline, ultra-low sulfur diesel and jet fuel from the Corpus Christi refinery complex to Laredo, TX and on to northern Mexico markets through deliveries to Nuevo Laredo, Tamaulipas and Santa Catarina, Nuevo León, near Monterrey.
Pending all government approvals, the project is expected to be in-service in the first quarter of 2018.
The Dos Águilas project includes four new refined liquids terminals with a total combined capacity of 1.15 MMbbls and 287-miles of 12-inch pipeline with 72,000 bpd of initial capacity and the capability to expand to up to 90,000 bpd. In the United States, the project consists of a new terminal located in Robstown, TX, near Corpus Christi and a 141-mile pipeline between Robstown and a new terminal in Laredo, TX.
The project also includes 10 miles of pipeline from Laredo to the Rio Grande River and border crossing facilities. In Mexico, the project will consist of 12 miles of pipeline from the Rio Grande River to a new terminal in Nuevo Laredo and 124 miles of pipeline from Nuevo Laredo to a new terminal in Santa Catarina, near Monterrey. The Dos Águilas project is expected to cost $500 million. The U.S. and Mexican governmental processes have commenced.
Dos Águilas intends to launch simultaneous open seasons for the U.S. and Mexican pipelines in the first quarter of this year to solicit indications of interest for transportation services. Transportation rates originating in Corpus Christi are expected to be about $2 to Laredo, $3.25 to the Nuevo Laredo terminal, and $5.75 to Monterrey, exclusive of terminal fees.
“By directly connecting refineries in Corpus Christi with multiple markets in northern Mexico, we are essentially opening the door to a whole new customer base for Texas refiners,” said Howard CEO Mike Howard.