San Antonio-based Howard Energy Partners (HEP) announced the successful completion of approximately $800 million in growth projects in 2023, including major pipelines, processing facilities, and storage and logistics facilities for renewable diesel. The expansion projects were carried out in the most active oil and gas producing basins in the United States.
In 2023, HEP achieved record volumes, with a 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), marking a 7 percent and 25 percent increase in volumes over 2022, respectively. The company accomplished these milestones while maintaining a perfect safety record throughout the year.
Mike Howard, HEP Chairman and CEO, expressed satisfaction, stating, “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.”
Key highlights of the expansion projects include:
South Texas Expansion:
- Completion of the Dos Cominos joint venture with NextEra Energy, including a new South Texas natural gas pipeline and facility expansion.
- The Spears project features a 62-mile, 36-inch pipeline and associated treating and compression facilities.
- This expansion responds to the growing demand for low-nitrogen natural gas from the Eagle Ford shale play in Webb County, Texas.
Port Arthur Terminal Expansion:
- Significant expansion at the 450-acre terminal facility in Port Arthur, Texas, to support Diamond Green Diesel’s new renewable diesel production facility.
- Includes a second deep-water dock and facilities to handle Refinery Grade Propylene and Polymer Grade Propylene.
Delaware Basin Expansion:
- Completion of the Catalyst Midstream Partners joint venture, including the 200 MMcf/d Train 3 expansion of the Stateline natural gas processing complex in Orla, Texas.
- Increases total processing capacity to over 600 MMcf/d, positioning Catalyst as a major aggregator of natural gas and associated natural gas liquids.
Safety and ESG Achievements:
- Completion of major expansion projects with zero recordable incidents or preventable vehicle accidents in 2023.
- Awarded GRESB’s five-star ESG rating for the second consecutive year, along with safety excellence awards from the GPA Midstream Association and the International Liquids Terminal Association.
Looking ahead to 2024, Howard Energy Partners is well-positioned with a strong liquidity position of nearly $1 billion to seize new opportunities and continue its growth trajectory.