Howard Midstream Energy Partners, LLC (HEP) through its subsidiary, Dos Aguilas, LLC plans to permit, construct and operate its proposed Dos Aguilas project, an open access system of refined products terminals and pipelines spanning from Corpus Christi, Texas to northern Mexico. The Dos Aguilas 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 Leon, near Monterrey. Pending all government approvals, the project is expected to be in-service in the first quarter of 2018.
Dos Aguilas Project Details
The Dos Aguilas 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 barrels per day of initial capacity and the capability to expand to up to 90,000 barrels per day. 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 Aguilas project is expected to cost approximately $500 million dollars. The US and Mexican governmental processes have commenced.
Open Season Details
Dos Aguilas 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.
“The Dos Aguilas 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 Chief Executive Officer.
“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 Aguilas 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. These two projects are testaments to increasing customer demand, our deep-rooted belief in the growing Mexican energy market, and the great partnerships and relationships we have developed there.”
Nueva Era Pipeline Details
In 2015 HEP announced plans to construct the Nueva Era Pipeline, a natural gas pipeline directly connecting the company’s Webb County Hub in South Texas to Escobedo and Monterrey in Nuevo Leon, Mexico. The approximately 200-mile Nueva Era Pipeline is expected to be in-service in June 2017