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Limited Supplemental Open Season on Phase 4 of the reversed Ho-Ho Pipeline
The limited supplemental Open Season will only offer contract transportation rates for the route from Nederland to St. James/Clovelly, Louisiana.
The Houma-to-Houston (“Ho-Ho”) System is owned and operated by SPLC and is comprised of over 350 miles of pipe between Clovelly, LA and Houston, TX. The initial phase of the Ho-Ho reversal was completed in January 2013 to deliver crude oil from connecting pipelines and terminals in East Houston to the Nederland / Port Neches area. The next phase (“Phase 2”) of the project is progressing on schedule and will enable crude originating in the Texas markets to reach Louisiana markets.
Subsequent phases 3 and 4 will expand the Ho-Ho Reversal system and allow additional committing shippers firm access to Louisiana markets in 2014. Additional pumping capability would be installed in the Houston and Port Neches areas to create this additional pipeline capacity. Once Phase 2 of the Ho-Ho Reversal Project is complete, the Ho-Ho system will be renamed the Houston-to-Houma System.
During the thirty day limited supplemental binding Open Season period, which begins August 29, 2013 at 9:00AM CST, and continues until October 16, 2013 at 12:00PM CST, interested shippers will have an opportunity to submit a binding bid for firm capacity from Nederland to St. James/Clovelly, Louisiana on the Ho-Ho Reversal.
Shippers may bid up to 125k bpd of capacity, which is the maximum amount of additional proposed Phase 4 capacity. Following completion of the Phase 4 expansion, 10 percent of the total pipeline capacity will continue to be available for uncommitted shippers.
About Shell Pipeline Company LP: For more than 80 years, Shell Pipeline Company LP has helped meet America’s energy needs. We transport more than 2 billion barrels of crude oil and refined products annually through thousands of miles of pipelines located in seven states.
We carry more than 50 different kinds of crude oil and more than 20 different grades of gasoline, as well as diesel fuel, jet fuel, chemicals, ethylene and natural gas liquids – products that are fundamental to the American way of life.
As a wholly owned subsidiary of Shell Oil Products US, a unit of Shell Oil Company, we’re part of one of the world’s leading energy companies, which has been a prominent participant in America’s energy industry for a century.
With our integrated network of trunk lines, distribution systems, interconnects and terminals, we operate safely, efficiently and dependably – key factors in keeping the commodities we carry more affordable for the people who count on them.