Shell Pipeline Considers Houma-To-Houston Pipeline Reversal

August 2011, Vol. 238 No. 8

Shell Pipeline Company LP is considering reversal of the Houma-to-Houston (Ho-Ho) pipeline system.

The project would provide pipeline access to additional crudes across the 300 miles of the U.S. Gulf of Mexico refining complex. This includes the domestic crude oil production increases in Texas and the mid-continent including the Barnett, Eagle Ford, and Bakken shale plays, as well as the growing crude supplies in the Cushing, OK area. The project would complement new pipeline infrastructure being built to the Houston area.

The project would reverse the existing Ho-Ho service to connect the Houston and Port Arthur markets with the Louisiana markets and enable the distribution of 300,000 bpd of crude across the region, depending upon crudes types shipped. Subject to customer commitments and regulatory approval, the Ho-Ho reversal is expected to begin service by early 2013.

Additionally, Shell Pipeline continues to determine interest for a new pipeline from Louisiana to the Golden Triangle area, (Beaumont, Port Arthur and Orange, TX). This would enhance access for U.S. Gulf of Mexico refiners to the anticipated increased domestic production and foreign crude available at St. James, LA.