Shell seeks oil shipper commitments for reversal of Houma-to-Houston pipeline
Shell Pipeline on Thursday announced the start of a binding open season period for firm capacity on the Ho-Ho Reversal pipeline system project.
The project will reverse flow for the 300,000 bpd line, which originally started at Houma, Louisiana, and continued along the Louisiana and Texas Gulf coasts to Houston.
Now, the pipeline seeks to transport crude from Houston to Louisiana. Inland crude production is on the rise in Texas amid growing interest in shale plays such as the Eagle Ford and Barnett.
Specifically, Shell says the reversal will provide pipeline access to additional crudes across the 300 miles of the US Gulf of Mexico refining complex.
Those crudes include the domestic crude oil production increases in Texas and the mid-continent, as well as the growing crude supplies in the Cushing, Okla. area.
To that end, the project would complement the new pipeline infrastructure that is currently being built to the Houston area, according to project officials.
Among these is the southern leg of the proposed Keystone pipeline expansion, which would move additional Cushing crude south to Houston.
During the 45-day binding period, which began on Wednesday and continues until April 20, interested shippers will have an opportunity to submit a binding bid for firm capacity on the Ho-Ho Reversal.
Subject to customer commitments and regulatory approval, the Ho-Ho Reversal is expected to begin service in early 2013, the company said.
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