Shell Pipeline successfully concluded a binding Open Season for firm capacity on the Houma-to-Houston pipeline system reversal project (Ho-Ho Reversal). Based on the commitments, Shell is proceeding with next steps to develop and execute the project.
Subject to regulatory approval, the Ho-Ho Reversal is expected to begin service in 2013.
Thes Ho-Ho Reversal project will provide pipeline access to additional crudes across the 300 miles of the U.S. Gulf of Mexico refining complex. Those crudes include the domestic crude oil production increases in Texas and the Midcontinent including the Eagle Ford, and Bakken Shale plays, as well as the growing crude supplies in the Cushing, OK area.
Additionally, the Ho-Ho Reversal project would complement the new pipeline infrastructure that is 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. The reversal could enable the distribution of 300,000 bpd of crude across the region, depending upon crudes types shipped.