SAN ANTONIO--(BUSINESS WIRE)--Howard Energy Partners (HEP) today announced that it completed approximately $800 million in growth projects in 2023, consisting of new major pipelines and processing facilities in the most active oil and gas producing basins in the United States and new storage and logistics facilities for renewable diesel on the Texas Gulf Coast. The Company also achieved record volumes in 2023, with current average natural gas throughput of over 2.5 billion cubic feet per day (Bcf/d) and current average terminalling throughput of more than 160,000 barrels per day (bpd), representing a 7 percent and 25 percent increase in volumes over 2022, respectively. The expansion projects and associated ongoing 24/7 operations were completed while achieving a perfect safety record to date in 2023.
“This has been a milestone year for Howard Energy Partners. We are extremely pleased to have successfully completed several strategic growth projects that substantially increase our ability to help customers move their products to market,” said Mike Howard, HEP Chairman and CEO. “As we look to 2024, our strong liquidity position of nearly $1 billion will allow us the ability to quickly execute on new opportunities and continue our strong growth trajectory.”
South Texas Expansion
HEP, as the operator of the Dos Cominos joint venture with NextEra Energy, completed its new South Texas natural gas pipeline and facility expansion in early November, one month ahead of schedule. The Spears project includes a 62-mile, 36-inch pipeline and significant associated treating and compression facilities, providing HEP’s South Texas customers the ability to transport up to 1 Bcf/d of incremental natural gas volumes to growing Gulf Coast LNG facilities where demand is forecasted to increase 152 percent by 2050. This expansion represents the largest domestic pipeline project in the Company’s history and was built in response to the LNG market’s growing demand for low-nitrogen natural gas from the Eagle Ford shale play of Webb County, Texas.
Port Arthur Terminal Expansion
HEP completed significant expansion projects at its 450-acre terminal facility in Port Arthur, Texas, to support Diamond Green Diesel’s new 470 million gallons per year renewable diesel production facility located at Valero’s Port Arthur refinery. The expansion includes a second deep-water dock with additional capacity available for third-party shippers.
HEP also commissioned new facilities to handle Refinery Grade Propylene and Polymer Grade Propylene including rail transloading spots, pressurized storage, and associated pipelines and pumps to connect the terminal to one of the world’s leading chemical companies.
Upon completion of all Port Arthur expansion projects, HEP’s facility consists of nearly two million barrels of storage, 16 miles of rail track with unit train and manifest service from two railroads, three barge docks, two deep-water docks capable of loading Panamax-class vessels, and pipeline connectively to local refiners and industrial plants.
Delaware Basin Expansion
HEP, as the operator of the Catalyst Midstream Partners (Catalyst) joint venture, completed its 200 million cubic feet per day (MMcf/d) Train 3 expansion of the Stateline natural gas processing complex in Orla, Texas, increasing total processing capacity to over 600 MMcf/d. The expansion project positions Catalyst as a major aggregator of natural gas and associated natural gas liquids in the highly coveted Stateline region of the Delaware Basin.
Safety and ESG Achievements
HEP completed these major expansion projects with zero recordable incidents or preventable vehicle accidents. Over the last three years, HEP achieved zero recordable incidents with more than two million manhours worked and zero preventable vehicle accidents with more than 5.8 million miles driven during this time period.
In 2023, HEP was also awarded GRESB’s five-star ESG rating, a top-tier classification that the Company has achieved for the second year in a row. This recognition, combined with the safety excellence awards from the GPA Midstream Association and the International Liquids Terminal Association, builds on HEP’s industry-leading track record of ESG and safety performance.
“While deploying $800 million of expansion projects is an integral part of our strategic growth plan, prioritizing safety and operational excellence is equally important,” said Howard. “As we continue to create long-term value for our investors and customers, our diverse capabilities and strong operational footprint positions us as a sought-after midstream partner.”
About Howard Energy Partners
San Antonio-based Howard Midstream Energy Partners, LLC d/b/a Howard Energy Partners is a diversified, purpose-driven energy infrastructure company focused on providing clean, low cost, reliable energy that powers communities and businesses and helps people flourish. We own and operate a portfolio of critical energy infrastructure assets in Texas, New Mexico, Oklahoma, Pennsylvania, and Mexico that are strategically positioned to serve the world’s current and future energy needs. The company has corporate offices in San Antonio and Houston, Texas and Monterrey, Mexico. For more information on Howard Energy Partners and how we deliver positive energy, please visit our website at www.howardenergypartners.com.
