Howard Energy moves forward with Dos Águilas Pipeline Project

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Howard Midstream Energy Partners LLC (HEP) announced that its subsidiary, Dos Águilas Pipeline LLC completed a successful open season on the Dos Águilas project, receiving more than sufficient customer interest to proceed with the project as planned. The Dos Águilas project is an open access system of refined products terminals and pipelines spanning from Corpus Christi, TX to northern Mexico. Pending all government approvals, the project is on schedule to be in service the first half of 2018.

The Dos Águilas Pipeline project will offer direct and seamless 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 Monterrey, Nuevo León. While Dos Águilas customers will experience seamless transportation service, for permitting and regulatory purposes, the project is broken down into four pipelines, with different names:

Border Express Pipeline, originating in Corpus Christi, TX delivering to Laredo, TX

Borrego Pipeline, originating in Laredo, TX terminating at the International Border Crossing (U.S.)

Poliducto Frontera Pipeline, originating at the International Border Crossing (Mexico), delivering to Nuevo Laredo, Tamaulipas

Poliducto del Norte Pipeline, originating in Nuevo Laredo, Tamaulipas, delivering to Monterrey, Nuevo Leon

On March 10, 2016, Mexico’s Comisión Reguladora de Energía (CRE) authorized Dos Águilas Pipeline to conduct an open season from April 25 to May 23, 2016, to secure volume commitments on the Poliducto Frontera and the Poliducto del Norte pipelines, to transport refined products from the International Border Crossing to Nuevo Laredo, Tamaulipas and Monterrey, Nuevo Leon. Concurrently with the CRE-authorized open season, Dos Águilas Pipeline conducted open seasons consistent with the Federal Energy Regulatory Commission’s (FERC) policies for oil pipelines on the affiliated U.S. pipelines, Border Express and Borrego, soliciting requests-for-service to transport refined products from the Corpus Christi refineries to Laredo, TX and the International Border Crossing. This is the first simultaneous, conforming CRE and FERC open season process to be conducted.