Howard Energy Partners (HEP) is to add 575,000 bbl (91,400 m3) of new tank capacity at its Port Arthur terminal, along with new pipeline connections to Valero’s nearby refinery, to handle a long-term agreement with Diamond Green Diesel (DGD), a joint venture between Valero and Darling Ingredients, which will produce renewable diesel at a new unit at the Valero refinery. HEP will also add 7 miles of rail track and associated rail loading/unloading facilities, truck unloading facilities and a Panamax deep water dock.
“Howard Energy Partners’ long-term contract provides DGD with a competitive advantage in the production and distribution of renewable diesel around the world,” says John Bullock, executive vice-president and chief strategy officer at Darling Ingredients. “We firmly believe the greater the flexibility of your supply chain, the better you can react to the changing dynamics, as the demand for renewable diesel continues to strengthen. We believe this agreement significantly enhances our raw material sourcing of feedstock as well as provides for better finished product marketing and distribution when the DGD Port Arthur facility commences production in the second half of 2023.”
“This significant expansion of our strategically located Port Arthur terminal illustrates the facility’s extensive footprint and capacity to grow and meet the needs of moving feedstock and refined products throughout the Gulf Coast market,” adds Rod Pullen, vice-president of business development and asset utilisation at HEP. “We look forward to additional future development, continuing our commitment to building infrastructure projects that bring long-term and repeatable value to our investors.”