Howard Energy Partners Proposes New Refined Products Pipeline System from Corpus Christi, Texas to Monterrey, México
The 287-mile Dos Águilas project will offer seamless transportation
for refined motor fuels and aviation fuels from refineries in Corpus
Christi to multiple markets in northern Mexico
Howard Midstream Energy Partners, LLC (HEP)
announced today that its subsidiary, Dos Águilas, LLC plans to permit,
construct and operate its proposed Dos Águilas project, an open access
system of refined products terminals and pipelines spanning from Corpus
Christi, Texas to northern Mexico. The Dos Águilas 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, Texas and on to northern Mexico markets through deliveries to
Nuevo Laredo, Tamaulipas and Santa Catarina, Nuevo León, near Monterrey.
Pending all government approvals, the project is expected to be
in-service in the first quarter of 2018.
Dos Águilas Project Details
The Dos Águilas project includes four new refined liquids terminals with
a total combined capacity of 1.15 million barrels and approximately 287
miles of 12-inch pipeline with 72,000 barrels per day of initial
capacity and the capability to expand to up to 90,000 barrels per day.
In the United States, the project consists of a new terminal located in
Robstown, Texas, near Corpus Christi and a 141 mile pipeline between
Robstown and a new terminal in Laredo, Texas. The project also includes
10 miles of pipeline from Laredo to the Rio Grande River and border
crossing facilities. In Mexico, the project will consist of 12 miles of
pipeline from the Rio Grande River to a new terminal in Nuevo Laredo and
124 miles of pipeline from Nuevo Laredo to a new terminal in Santa
Catarina, near Monterrey. The Dos Águilas project is expected to cost
approximately $500 million dollars. The US and Mexican governmental
processes have commenced.
Open Season Details
Dos Águilas intends to launch simultaneous open seasons for the US and
Mexican pipelines in the first quarter of this year to solicit
indications of interest for transportation services. Transportation
rates originating in Corpus Christi are expected to be approximately
$2.00 USD to Laredo, $3.25 USD to the Nuevo Laredo terminal, and $5.75
USD to Monterrey, exclusive of terminal fees. All rates are approximate
and dependent upon commitment and term.
CEO’s Perspective
“The Dos Águilas project is another example of how the 2013 Energy
Reform in Mexico is creating a competitive market environment and
lowering prices for Mexican consumers. Additionally, by directly
connecting refineries in Corpus Christi with multiple markets in
northern Mexico, we are essentially opening the door to a whole new
customer base for Texas refiners,” said Mike Howard, Howard Energy
Partners Chief Executive Officer.
“Howard Energy has always operated under the philosophy that what is
good for Mexico is good for South Texas,” said Howard. “We continue to
believe in this philosophy and the Dos Águilas project is our second
major venture in Mexico, along with our cross-border Nueva Era natural
gas pipeline which is expected to be in-service next year. These two
projects are testaments to increasing customer demand, our deep-rooted
belief in the growing Mexican energy market, and the great partnerships
and relationships we have developed there.”
Nueva Era Pipeline Details
In 2015 HEP announced plans to construct the Nueva Era Pipeline, a
natural gas pipeline directly connecting the company’s Webb County Hub
in South Texas to Escobedo and Monterrey in Nuevo León, Mexico. The
approximately 200-mile Nueva Era Pipeline is expected to be in-service
in June 2017. For more information on the Nueva Era Pipeline, please
visit www.pipelinenuevaera.com.
About Howard Energy Partners
San Antonio-based Howard Midstream Energy Partners, LLC dba Howard
Energy Partners is an independent midstream energy company, owning and
operating natural gas gathering and transportation pipelines, natural
gas liquids processing plants, rail facilities, liquid storage
terminals, deep-water port facilities and other related midstream assets
in Texas and Pennsylvania. The company has corporate offices in San
Antonio, Houston and Mexico City. For more information on Howard Energy
Partners, please visit our website www.howardenergypartners.com.
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