Shell mulls new Louisiana-to-Texas crude pipeline
Shell Pipeline Co. is considering building a new pipeline segment (Westward Ho) to move crude from St. James, Louisiana to the Golden Triangle area of southeast Texas, the company said on Wednesday.
Shell said its continued investment in Westward Ho would largely depend upon a favorable response to Shell Pipeline's proposed Houma-to-Houston pipeline (Ho-Ho) reversal, which closes on October 17, 2011.
The Westward Ho pipeline would create an additional market outlet for the anticipated increase in domestic crude oil production from the deepwater US Gulf of Mexico, the company said.
For US Gulf of Mexico refiners, this project would enhance access to both the domestic production and the foreign crudes available at St. James, La.
Further, the Westward Ho Pipeline project would complement the new storage and logistics infrastructure that is currently being built in the St. James and Clovelly, La. areas.
The Westward Ho Pipeline would consist of a new pipeline build to connect the Louisiana crude markets with the Texas markets.
The Westward Ho Pipeline would be a batched system and could enable the distribution of approximately 900,000 bpd of crude across the region depending upon crudes types shipped.
Subject to customer commitments and regulatory approval, the Westward Ho Pipeline would begin service by early 2015.
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