Howard Energy Partners Announces Construction Of Two Major Liquid Handling Facilities

December 19, 2013
Howard Energy Partners

SAN ANTONIO – December 19, 2013 - Howard  Midstream Energy Partners, LLC dba Howard Energy Partners (HEP) today announced it has begun construction on two major liquid handling facilities, the Live Oak Stabilizer, an off-spec liquids stabilizer facility near Three Rivers, Texas, and the Brownsville Liquids Terminal, a bulk liquid storage facility within the Port of Brownsville, Texas. Both projects are expected to be completed by mid-2014.

LIVE OAK STABILIZER

With a capacity of up to 10,000 barrels per day, the Live Oak Stabilizer will provide off-spec liquids stabilization, and a firm field-level sales point and processing outlet for both on-spec and off-spec liquids out of the Eagle Ford Shale and other producing basins in the South Texas area. Off-spec liquids are produced liquids that do not meet market pipeline specifications.

The Live Oak Stabilizer will be equipped with six truck racks with direct access off of Highway 281 to receive incoming, trucked liquids with a vapor pressure up to 205 pounds per square inch. The facility will take the off-spec liquids received via trucks and have the ability to produce three separate, marketable products - condensate with a Reid vapor pressure of 9-11 pounds per square inch, y-grade natural gas liquids (NGLs) and rich gas. The Live Oak stabilizer will feature access to multiple outlets for the produced condensate, as well as pipeline connections for the y-grade NGLs and rich gas. Located adjacent to HEP’s Live Oak Railroad Park, the facility also creates potential opportunities to blend produced condensate with other crude products or ship it via rail to other markets.

“The Live Oak Stabilizer satisfies the growing need for the firm stabilization and transport of off-spec liquids in the Eagle Ford area,” said Josh Weber, senior vice president of commercial and business development for Howard Energy Partners. “The Live Oak Stabilizer will provide a reliable, cost-effective solution for marketing on-spec and off-spec trucked liquids, allowing our customers to sell their product without incurring the significant trucking and demurrage fees associated with hauling the product to the nearest comparable facilities in East Texas or the Fort Worth Basin.”

HEP has executed definitive agreements with Enbridge Liquids Transportation & Marketing, L.P. (ELTM) for 50 percent of the capacity of the Live Oak Stabilizer and is actively seeking additional commitments. ELTM purchases on-spec and off-spec liquids and condensate in the Eagle Ford area and has a fleet of trucks and trailers to reliably transport Eagle Ford liquids and condensate to the new facility.

BROWNSVILLE TERMINAL

Located within the Port of Brownsville, Texas, in Foreign Trade Zone #62, the Brownsville Terminal will consist of 21 tanks providing a total of up to 225,000 barrels of bulk liquid storage for upstream, midstream, and downstream hydrocarbons, and other bulk liquids requiring custom terminal services. This modern  and automated terminal  includes  access to a Panamax-class dock with ocean-going  vessel and inland barge capabilities, a three-bay truck rack with on-scale loading capabilities, an 11 railcar loading and unloading facility, steam heating, real-time product monitoring and control systems,  and specialized infrastructure for commodity blending.

The Port of Brownsville is the largest and closest deep-water port to Monterrey, Nuevo Leon, Mexico, a major industrial center in the Republic of Mexico.  The port provides customers with unparalleled access to efficient transportation systems to Mexico as well as other world markets. Additionally, the Brownsville Terminal will provide customers with interstate access via Interstate 69 and Toll Road 550, rail access via the Brownsville Rio Grande Railroad and Union Pacific Railroad, inland marine vessel access via the intercostal waterway, and deep water marine access via the Liquid Cargo Dock.

“These two projects significantly increase the platform of services we can offer our customers, by launching us into the liquids handling space,” said Brad Bynum, president of Howard Energy Partners. “As we enter the 2014, we are focused on growth, diversification and sustainable value creation. Our ability to take on projects of this magnitude allows us to better meet our customers’ needs and be a total solutions midstream provider in South Texas.”

About Howard Energy Partners

San Antonio-based Howard Midstream Energy Partners, LLC dba Howard Energy Partners is an independent midstream energy company, owning and operating approximately 500 miles of natural gas pipelines, natural gas liquids processing plants, amine treating plants, a railroad park and other related midstream facilities in South Texas primarily serving the Olmos, Escondido and Eagle Ford resource plays. The company has offices in Houston, San Antonio, Asherton, and Laredo, Texas. For more information on Howard Energy Partners, please visit our website www.howardenergypartners.com.