Shell Pipeline officials say the Ho-Ho pipeline reversal project is progressing as planned, based on shipper requests and new crude production and infrastructure coming online. After completion of this project, shippers will have access to markets and connectivity in Nederland and Port Arthur, TX.
Through a Declaratory Order, the Federal Energy Regulatory Commission approved the contract rates and capacity allocation for the Ho-Ho Reversal project. The initial phase of the Ho-Ho Reversal will move crude from connecting pipelines and terminals in East Houston to Nederland and Port Arthur, thereby supplying the refining complex across the region with crude from Eagle Ford and Permian, as well as crude supplies from the Cushing, OK area. Phase I of the Ho-Ho Reversal project is designed to complement the new pipeline infrastructure that is being built to the Houston area.
In other news, Shell Pipeline announced it has concluded its binding open season period for firm capacity on the Westward Ho pipeline project; receiving volume commitments that support the continuation of the project and focuses its scope. Depending upon crudes types shipped, the Westward Ho would enable the initial distribution of 300,000 bpd of crude to the markets and pipeline connectivity available in the Nederland/Port Arthur area.
Expansion beyond the initial capacity is possible should additional shipper commitments support such a plan.
According to the company, the project would enhance access for Gulf of Mexico refiners to the anticipated increased domestic production and foreign crude available at St. James, LA. It would complement the new storage and logistics infrastructure being built in the St. James and Clovelly, LA areas.
Subject to regulatory approval, the Westward Ho Pipeline is expected to begin service by mid 2015.