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Limited Supplemental Binding Open Season
Shell Pipeline today announced the start of a limited supplemental binding Open Season for additional firm capacity commitments on the Houma-to-Houston pipeline system reversal project (“Ho-Ho Reversal”). The limited supplemental Open Season will offer contract transportation rates for the route from Houston, Texas to St. James/Clovelly, Louisiana.
Shell Pipeline’s Ho-Ho Reversal project will provide west-to-east pipeline access to additional crudes across the 300 miles of the US Gulf of Mexico refining complex. Those crudes include the domestic crude oil production increases in Texas and the mid-continent, including the Permian, Eagle Ford, and Bakken shale plays, as well as the growing crude supplies in the Cushing, OK area.
Additionally, the Ho-Ho Reversal project will complement the new pipeline infrastructure that is currently being built to the Houston and Nederland areas.
During the thirty day limited supplemental binding Open Season period, which begins February 25 at 9:00AM CST, and continues until March 27 at 12:00PM CST, interested shippers will have an opportunity to submit a binding bid for firm capacity from Houston to St. James/Clovelly on the Ho-Ho Reversal. Incremental firm capacity of 75k bpd will be offered, contingent upon receiving sufficient bids in the limited supplemental Open Season to support the installation of additional pumping capacity.
The initial phase of the Ho-Ho reversal was completed last month with deliveries of crude oil being moved from connecting pipelines and terminals in East Houston to Nederland / Port Arthur area. Shell Pipeline continues construction work on the next phase that would enable crude originating in the Houston and Port Arthur area to be accessible to Louisiana markets.
Once completed, the Ho-Ho Reversal project would reverse the existing Ho-Ho service to connect the Houston and Port Arthur, TX markets with the Louisiana markets. The Ho-Ho Reversal could enable the distribution of approximately 300,000 bbls per day of crude across the region depending upon crudes types shipped.
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.