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.
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.
- Seaway pipeline creates contango with oil glut (mb50.wordpress.com)
- TransCanada to Build Keystone XL Leg (TRP, ENB) (247wallst.com)
- Seaway crude oil pipeline purging for reversal (business.financialpost.com)
- Rail and Pipeline expansions and project to move more Bakken Oil from North Dakota and Saskatchwan (nextbigfuture.com)
- Oil Pipeline from Cushing, Oklahoma to the Gulf Coast will continue (oklahomarealestate.wordpress.com)
- Enbridge, Enterprise advance Gulf Coast pipelines (business.financialpost.com)
The U.S. Energy Information Administration said in a report that it estimates that U.S. natural gas pipeline companies added about 2,400 miles of new pipe to the grid as part of over 25 projects in 2011.
New pipeline projects entered service in parts of the U.S. natural gas grid that can be congested: California, Florida, and parts of the Northeast. Only a portion of this capacity serves incremental natural gas use; most of these projects facilitate better linkages across the existing natural gas grid, the EIA said.
By convention, the industry expresses annual capacity additions as the sum of the capacities of all the projects completed in that year. By this measure, the industry added 13.7 billion cubic feet per day (Bcf/d) of new capacity to the grid in 2011. The six largest projects put into service in 2011 added 1,553 miles and about 8.2 Bcf/d of new capacity to the system. Much of this new capacity is for transporting natural gas between states rather than within states. Golden Pass, Ruby Pipeline, FGT Phase VIII, Pascagoula Expansion, and Bison Pipeline projects added 6.1 Bcf/d, or about 80%, of new state-to-state capacity.
The EIA said that natural gas pipeline capacity additions in 2011 were well above the 10 Bcf/d levels typical from 2001-2006, roughly the same as additions in 2007 and 2010, but significantly below additions in 2008 and 2009. Capacity added in 2008 and 2009 reflected a mix of intrastate and interstate natural gas pipeline expansions, related mostly to shale production, liquefied natural gas (LNG) terminals, and storage facilities.
- USA: Golden Pass LNG Completes Phase 2 Commissioning, Receives FERC Approval
- USA: First Commissioning Cargo Arrives at Golden Pass LNG Terminal
- USA: Golden Pass LNG Commences Commercial Operations
- USA: Golden Pass LNG Terminal Announces 1st Cargo for Commissioning
- USA: Golden Pass LNG Plans Re-Exports
- USA: Golden Pass LNG Plans Re-Exports (mb50.wordpress.com)
- Macquarie Vies To Sell U.S. LNG To India (mb50.wordpress.com)
- USA: Discovery to Expand Pipeline System in Deepwater Gulf of Mexico (mb50.wordpress.com)
- CLNG: EIA Gas Export Study Reveals Only Part of Economic Picture (USA) (mb50.wordpress.com)
- Soc Gen Says China May Look for US LNG Deals in Future (mb50.wordpress.com)
- USA: Enbridge Examines Stingray Pipeline after Gas Leak Reported (mb50.wordpress.com)