Howard Midstream Energy Partners, LLC has entered into a long-term terminal services agreement with a third-party shipper and plans to expand its bulk liquids terminal facility in Port Arthur, Texas. Under the terms of the agreement, the company will build or install more than 15 new tanks that will add more than one million barrels of storage for a variety of products, and construct a pipeline system to deliver products between the HEP’s Port Arthur facilities and other third-party supply points.
Permitting for the development of the Port Arthur Terminal started in the first quarter of 2016, and final engineering of the facilities and pipelines is currently in progress. Construction is expected to start next month, with operations expected to start 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.”