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Seaway – Echo terminal link planned

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News wires  02 March 2012 02:57 GMT

The proposed pipeline would be about 40 miles long, Enbridge executive Brad Shamla told Reuters.

“We are shipping crude out over a dock to other destinations on the Gulf Coast,” he said.

Following this, another pipeline would be laid, this one from the Echo terminal, along the Houston Ship Channel, to the Port Arthur area of Texas on the border of Louisiana.

Shamla said that pipeline will be about 80 miles in length and be done in 2014.

The plan was announced as the companies continued their purging of the 500-mile Seaway pipeline, which they said was ahead of schedule.

The pipeline will begin by carrying 150,000 barrels per day by 1 June from the oil hub of Cushing, Oklahoma, to Gulf Coast refineries, said Shamla.

The pipeline is the first of several projects to siphon the glut of crude oil sitting in Cushing to the refineries along the Gulf Coast.

The reversed Seaway pipeline capacity is expected to grow 400,000 bpd in 2014 but could increase more if the current open season seeking more firm shipping commitments is successful, Reuters reported.

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Kinder Morgan buys out partner in Houston Ship Channel project

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by Simone Sebastian

Kinder Morgan has bought out its partner in a $430 million Houston Ship Channel terminal project, the company has announced.

TransMontaigne Partners held 50 percent interest in the Battleground Oil Specialty Terminal Company, or BOSTCO, joint venture, which is slated to build 52 oil storage tanks with a total capacity of 6.6 million barrels on the Houston Ship Channel.

Kinder Morgan Energy Partners now owns 98 percent of the project, with an unnamed BOSTCO customer controlling the remaining 2 percent.

Construction began Dec. 14 on the terminal, which will handle low-grade petroleum products and residual fuel used by ship engines and industrial plants. It will begin limited operation in the third quarter of 2013. The terminal is scheduled to be fully operational in early 2014.

“The project will include one of the deepest vessel drafts in the Houston Ship Channel and position Kinder Morgan extremely well for the growing trend of exporting petroleum related products overseas,” said Kinder Morgan Terminals President Jeff Armstrong in a written statement.

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