Enbridge, Enterprise Products To Reverse Seaway Crude Oil Pipeline
(RTTNews) – Enbridge Inc. (ENB.TO: News ,ENB: News ) and Enterprise Products Partners L.P. (EPD: News ) agreed to reverse the direction of crude oil flows on the Seaway pipeline to enable it to transport oil from Cushing, Oklahoma to the U.S. Gulf Coast. Pending regulatory approval, the line could operate in reversed service with an initial capacity of 150,000 barrels per day by second quarter 2012.
Patrick Daniel, President and Chief Executive, Enbridge Inc., said, “A Seaway reversal will provide capacity to move secure, reliable supply to Texas Gulf Coast refineries, offsetting supplies of imported crude.”
Meanwhile, Michael Creel, President and Chief Executive of Enterprise’s general partner, noted, “We believe that reversing the direction of crude oil movement on Seaway and the construction of additional infrastructure will accelerate access to Gulf Coast markets, reduce transportation costs, improve both producer and refiner economics and hasten the development of North America’s crude oil reserves.”
Following pump station additions and modifications, anticipated to be completed by early 2013, the capacity of the reversed Seaway Pipeline would be up to 400,000 barrels per day in mixed service, the company noted. Enbridge and Enterprise anticipate that the reversed Seaway pipeline would be fully contracted. After reversing the direction that crude oil flows on the 500-mile, 30-inch diameter, long-haul pipeline, Seaway would deliver crude from Cushing into the Houston-area market by utilizing existing affiliate and third-party pipelines as well as its Texas City local pipeline system.
- ConocoPhillips to sell interests in 2 pipelines (seattletimes.nwsource.com)
- Enbridge, Caisse snap up Conoco pipelines for US$2B (business.financialpost.com)
- Crude Passes $100 (zerohedge.com)
- Enbridge, Enterprise plan Cushing pipeline (marketwatch.com)
- ConocoPhillips selling pipelines for $2 billion (marketwatch.com)
Posted on November 16, 2011, in Energy, GEOPOLITICS, Houston, Oil, Political economy and tagged Cushing, Cushing Oklahoma, Enbridge, Enterprise Products, Gulf Coast of the United States, Houston, Petroleum, Political economy, Reverse, Seaway, Seaway Crude Oil Pipeline, Texas City. Bookmark the permalink. 1 Comment.