A growing diesel fuel demand in the Delaware Basin of west Texas has prompted Dallas-based Holly Energy Partners, L.P. to move ahead with a nearly $20 million truck loading rack in Orla, Texas.
The company, with refinery operations in Tulsa, Oklahoma and El Dorado, Kansas will expand its logistics footprint and connect to its New Mexico refined product system.
Construction will begin in the second quarter and should be finished by the fourth quarter of 2018. The facility will be capable of delivering up to 30,000 barrels a day of diesel depending on market demand.
The company expects to enter into a long-term agreement containing minimum annual commitments.
The expansion of the operation joins Holly’s other ventures including crude gathering pipelines, tankage and terminals in Oklahoma, Texas, New Mexico, Arizona, Washington, Idaho, Utah, Nevada, Wyoming and Kansas. It also has refinery processing units in Kansas and Utah.