Howard Midstream Energy Partners plans to significantly expand its bulk liquids storage facility in Texas following a long-term terminal services agreement.
Under the agreement with a third party shipper, Howard Midstream will construct more than 15 new tanks, adding more than one million barrels of storage for a variety of products. It will also construct new marine facilities for both blue water and inland marine vessels.
The company also plans to construct a pipeline system to transport products between its Port Arthur facilities and other third-party supply points.
Final engineering of the Port Arthur terminal, which started in the first quarter of 2016, and pipelines is underway and construction is expected to begin in March.
The facility is expected to take 18 months to construct and operations are expected to begin in 2018. If warranted by future demand, the terminal can be expanded to include up to 24 million barrels of storage, and multiple blue water and inland marine docks.
Senior vice president of terminals and transportation, Mark Helmke, says: ‘Howard Midstream Energy’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.
‘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 product.’