Oleochem Analytics — Howard Energy Partners (HEP), a Texas-based independent midstream energy company, announced last week that it has executed long-term agreements with Diamond Green Diesel (DGD) and plans to significantly expand its Port Arthur, Texas terminal facilities to support DGD’s new plant.
DGD’s new plant will be a 470m gal/year renewable diesel production facility to be located at Valero’s Port Arthur refinery, and it is anticipated to commence operations in the second half of 2023. Once operational, DGD’s total annual production capacity is expected to be approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.
DGD is a 50/50 joint venture between Valero Energy Corporation and Darling Ingredients producing renewable diesel.
Engineering, permitting, and construction on HEP’s Port Arthur terminals facility expansion has begun, with an in-service date coinciding with the startup of DGD’s new plant.
HEP will provide DGD with logistic solutions for renewable diesel feedstock and finished product through the construction of 575,000 barrels of tank storage, three pipelines and associated connections to Valero’s Port Arthur refinery, seven miles of rail track and associated rail unloading/loading facilities, truck unloading facilities, and a Panamax-class-capable deep-water dock. The new facilities are being designed to handle multiple products and have additional capacity for third-party shippers.
Once this expansion is complete, HEP’s Port Arthur facility will consist of 1.9 million barrels of refined product storage capacity, 16 miles of rail track with unit train and manifest service from two railroads, three barge docks, two ship docks, and pipeline connectivity to local refiners and major refined product distribution hubs.
Rod Pullen, Vice President of Business Development and Asset Optimization for HEP, said “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.”
“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”, said John Bullock, Executive Vice President, Chief Strategy Officer for Darling Ingredients. “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.”