Moving Poseidon via LOCAP will free up an additional 100-140kbd of capacity for Zydeco’s shippers on the Houma to St. James 18” pipeline, while enabling the Poseidon shippers to ship under the joint tariff at the same rate structure as the existing 18” pipeline.
“This is a big win in meeting our customers’ and the market’s needs for additional capacity,” said Michele Joy, Vice President of Zydeco. “And we’re thrilled with the positive response we’ve already received from our shippers.”
“Providing this kind of alternative in a collaborative way truly highlights how we’re working to ensure a consistent and secure path for our customers,” said Shawn Lyon, President of LOCAP.
In another move to provide optionality for customers, Zydeco and Sunoco Logistics Partners L.P. (“Sunoco”) also filed a joint tariff on August 1, 2016 to open a connection from SUNOCO’s Nederland, Texas Terminal into Zydeco pipeline at Port Neches, Texas. This will allow additional capacity to be available to shippers on September 1, 2016.
“To ensure that we secure the flexibility and optionality that the shipping community requires, the arrangement with Sunoco simply made perfect sense,” said Michele Joy, Vice President of Zydeco.
About Zydeco Pipeline Company LLC:
Zydeco Pipeline Company is jointly owned by Shell Pipeline Company LP (SPLC) and Shell Midstream Partners, L.P. (NYSE: SHLX). Zydeco’s Houston to Houma oil pipeline system runs from Houston, Texas to market hubs in St. James and Clovelly, Louisiana. It provides US Gulf Coast refineries and terminals with pipeline access to additional sources of growing light crude oil production arriving in the Houston market from the Eagle Ford shale, Permian Basin and Bakken shale and to offshore production landing in Houma, Louisiana.
About LOCAP LLC:
LOCAP is a common carrier pipeline system. LOCAP transports crude oil from Clovelly, Louisiana through a 54 mile, 48-inch pipeline to the LOCAP St. James Terminal facility and other destinations in St. James, Louisiana. In St. James, LOCAP offers further distribution to a large number of refineries via connecting pipeline systems.