Port Arthur terminal facilities expanding to handle feedstock, renewable diesel for new DGD plant

Photo: Howard Energy Partners

San Antonio, Texas-based Howard Energy Partners announced May 13 that it has executed long-term agreements with Diamond Green Diesel, a 50/50 joint venture between Valero Energy Corp. and Darling Ingredients Inc., and plans to significantly expand its Port Arthur, Texas, terminal facilities to support DGD’s new 470 million gallon per year renewable diesel production facility to be located at Valero’s Port Arthur refinery. Engineering, permitting, and construction on HEP’s Port Arthur 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 24.15 million gallons 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-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 79.8 million gallons 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.

“We are excited to work with both Valero and Darling to support their new renewable diesel production facility and help bring this sustainable, clean-burning fuel to market,” said Rod Pullen, vice president of business development and asset optimization for HEP. “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 look forward to additional future development, continuing our commitment to building infrastructure projects that bring long-term and repeatable value to our investors.”

John Bullock, executive vice president and chief strategy officer for Darling Ingredients, said, “Howard Energy Partners’ long-term contract with Diamond Green Diesel provides DGD with a competitive advantage in the production and distribution of renewable diesel around the world. 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. We are fortunate to have a growth-oriented company like HEP in Port Arthur to team up with on this project and we look forward to our long-term relationship.”