Howard Energy Midstream Partners LLC is planning a $500 million system of refined products terminals and pipelines stretching from the Texas Gulf Coast to northern Mexico.
The project aims to connect output from Corpus Christi, Texas, refineries to Mexican markets in the aftermath of sweeping energy reform finalized in 2014 that ended Mexican state-owned oil company Pemex’s decades-long monopoly on a oil sector activities.
The Don Aguilas project, to start up in the first quarter of 2018, will move gasoline, ultra-low sulfur diesel and jet fuel from Corpus Christi refineries to Laredo, Texas, and on to Nuevo Laredo, Tamaulipas and Santa Catarina, Nuevo Leon, near Monterrey.
The project will include four new refined products terminals with a combined capacity of 1.15 million barrels and about 287 miles (461 km) of new pipeline that will initially move 72,000 barrels per day (bbl/d). The pipeline system can be expanded to 90,000 bbl/d.
Howard’s Don Aguilas subsidiary will launch an open season to gauge shipper interest in moving fuels on the pipeline system in during the first quarter this year.
Howard Energy said the company is seeking permits for the project.