Howard Midstream Energy Partners, LLC has executed a long-term terminal services agreement with a third-party shipper and plans to significantly expand its bulk liquids terminal facility in Port Arthur, Texas. Under the terms of the agreement, the company will construct or install more than 15 new tanks adding more than one million barrels of storage for a variety of products, and 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, and final engineering of the facilities and pipelines is underway. Construction is expected to begin next month, with operations expected to begin in 2018.
“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 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.”