abarrelfull wrote on 21 Dec 2011 07:08
Tags: enbridge enterprise oil pipeline usa
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Enterprise Products Partners L.P. (“Enterprise”) (NYSE: EPD) and Enbridge Inc. (“Enbridge”) (NYSE/TSX: ENB) today announced plans to hold concurrent open seasons from January 4, 2012 through February 10, 2012 to solicit capacity commitments from shippers for an expansion of the
Seaway Pipeline and an extension of the pipeline into the Port Arthur/Beaumont refining market.
Enterprise and Enbridge recently announced plans to reverse the flow direction of the 500-mile, 30-inch diameter Seaway crude oil pipeline, enabling it to transport crude oil from the oversupplied hub in Cushing, Oklahoma to the U.S. Gulf Coast.
The initial 150,000 barrels per day (“BPD”) of capacity on the reversed system could be available by the second quarter 2012. Following pump station additions and modifications, which are expected to be completed by the first quarter 2013, capacity would increase to 400,000 BPD, assuming a mix of light and heavy grades of crude oil.
Shippers who participated in the Wrangler open season have indicated strong support for the Seaway reversal and expansion. Given the advantages associated with Seaway, Wrangler has been terminated. Depending on the results of the open season, the Seaway pipeline would be looped or twinned to create additional capacity. This new loop would be built at the size and capacity required to meet shipper needs and in a location that generally follows the route of the existing Seaway pipeline.
Michael A. Creel, President and Chief Executive Officer of Enterprise’s general partner, said, “Leveraging the benefits of the existing Seaway pipeline system, which is expected to be fully contracted, provides shippers with accelerated access to the Gulf Coast refining market, while an expansion offers incremental capacity in excess of 400,000 barrels per day and could be available in early 2014.”
The new 85-mile pipeline that will be built from Enterprise’s ECHO crude oil terminal southeast of Houston to Port Arthur, Texas will give shippers access to the region’s heavy oil refining capabilities. Service is scheduled to begin in early 2014.
In a separate announcement, Enbridge today announced that it is proceeding with its Gulf Coast Access project, which will transport crude oil from Flanagan, Illinois, south to Cushing via an additional line it will construct, and then to Houston and Port Arthur on the Seaway pipeline system joint venture. Enbridge will also hold a concurrent second open season to provide the opportunity for shippers to subscribe for additional capacity from Flanagan all the way to the Texas Gulf Coast.
“Expansion of the Seaway System, complemented by the addition of capacity on Enbridge’s systems from the Chicago area to Cushing, gives both U.S. and Canadian producers new and timely options to reach the Gulf Coast,” said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc.
Enbridge’s $1.15 billion acquisition of an interest in Seaway from ConcocoPhillips closed December 20, 2011. Enterprise and Enbridge each own a 50 percent ownership interest in the pipeline system with Enterprise continuing to serve as operator.
Additional information about the open seasons will be available online at www.seawaypipeline.com beginning January 4, 2012. For commercial inquiries, please contact:
