By January 28, 2016 0 Comments Read More →

Howard Energy proposes refined products pipeline from Texas to Mexico

In US, project is new terminal located in near Corpus Christi and 141-mile pipeline between Robstown, TX and new terminal in Laredo, TX

Howard

Mike Howard, Howard Energy Partners CEO.

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, Howard Energy said in a press release.

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 b/d of initial capacity and the capability to expand to up to 90,000 b/d.

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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.

Howard

Mexico Natural Gas Transport System: There are 10 natural gas pipelines that cross the U.S.-Mexico border with more on the way

“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 CEO.

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.

“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.”

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