Shell Pipeline announced a binding open season period for firm capacity on the Houma-to-Houston pipeline system reversal project (Ho-Ho Reversal).
The project will provide pipeline access to additional crudes across the 300 miles of the Gulf of Mexico refining complex. Those include 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 area. The project would complement pipeline infrastructure being built to the Houston area.
Shell Pipeline’s project would reverse the existing Ho-Ho service to connect the Houston and Port Arthur markets with the Louisiana markets. This could enable distribution of 300,000 bpd of crude across the region. A 45-day binding open season ends April 20. Subject to customer commitments and regulatory approval, the Ho-Ho Reversal could begin service in early 2013.