Shell Pipeline starts supplemental Houston-Houma crude line open season

Shell Pipeline Co. LP has started a limited supplemental binding open season for additional firm capacity commitments on Phase 4 of the Houma-to-Houston crude oil pipeline system reversal project, offering only contract transportation rates for the route from Nederland, Tex., to St. James-Clovelly, La. The Ho-Ho System consists of more than 350 miles of pipe between Clovelly and Houston.

Phase 1 of the reversal entered service in January, delivering crude from connecting pipelines and terminals in East Houston to the Nederland-Port Neches area. Phase 2 will move crude from Texas to Louisiana. Once Phase 2 of the Ho-Ho reversal is complete, Shell will rename it the Houston-to-Houma System.

Subsequent Phases 3 and 4 will expand the Ho-Ho Reversal and allow additional committing shippers firm access to Louisiana markets in 2014. Additional pumping power installed in the Houston and Port Neches areas will expand pipeline capacity.

Interested shippers will have an opportunity to submit a binding bid for up to 125,000-b/d firm capacity, the maximum size of the planned expansion. Following completion of the Phase 4 expansion, 10% of total pipeline capacity will remain available for spot shippers. The reversed Ho-Ho will move up to 300,000 b/d depending on crude types shipped (OGJ Online, Mar. 8, 2012).

The open season ends Oct. 16.

Contact Christopher E. Smith at chriss@ogjonline.com.

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