Shell Mulls Expanding Tx. Pipeline System
Shell Pipeline Company LP is considering building a new pipeline segment to move crude from St. James, Louisiana to the Golden Triangle area of Texas ("Westward Ho") thus expanding the system. Shell Pipeline's continued investment in Westward Ho will largely depend upon a favorable response to the Shell Pipeline's Houma-to-Houston pipeline ("Ho-Ho") reversal solicitation of interest that closes October 17, 2011.
Shell Pipeline's Westward Ho pipeline would create an additional market outlet for the anticipated increase in domestic crude oil production from the deepwater US Gulf of Mexico. For US Gulf of Mexico refiners, this project would enhance access to both the domestic production and the foreign crudes available at St. James, LA. Further, the Westward Ho Pipeline project would complement the new storage and logistics infrastructure that is currently being built in the St. James and Clovelly, LA areas.
The Westward Ho Pipeline would consist of a new pipeline build to connect the Louisiana crude markets with the Texas markets. The Westward Ho Pipeline would be a batched system and could enable the distribution of approximately 900,000 bbls per day of crude across the region depending upon crudes types shipped. Subject to customer commitments and regulatory approval, the Westward Ho Pipeline is expected to begin service by early 2015.
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