Howard Energy Partners is expanding its Port Arthur, Texas, terminal facilities to support Diamond Green Diesel’s (DGD) recently approved plant in the same city.

The DGD plant will be a 470 million-gallon-per-year renewable diesel production facility located at Valero Energy Corp.’s Port Arthur refinery. The facility is expected to be completed in 2023.

Howard Energy Partners will provide DGD with logistic solutions for renewable diesel products through the construction of 575,000 barrels of tank storage, three pipelines and associated connections to Valero’s Port Arthur refinery.

“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,” Rod Pullen, Howard Energy’s vice president of business development and asset optimization, said in a statement.

San Antonio-based Howard Energy Partners operates natural gas and oil transportation pipelines and plants, storage terminals, deep-water dock and terminal facilities, and transloading facilities in Texas, New Mexico, Oklahoma, Pennsylvania and Monterrey, Mexico. 

Howard Energy will also build 7 miles of rail track and rail unloading/loading facilities, truck facilities, and a deep-water dock at the Port Arthur refinery.

DGD is a joint venture between San Antonio-based Valero Energy Corp. (NYSE: VLO) and Irving, Texas-based Darling Ingredients Inc. (NYSE: DAR).

The DGD plant received approval from both companies’ boards of directors in January to proceed with the construction of the renewable diesel production facility. The plant’s capacity is estimated to be 470 million gallons per year of renewable diesel.

The estimated construction cost for the DGD plant is $1.45 billion.

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