Shell's Zydeco Oil Pipeline Running at Reduced Capacity
(Reuters) — Shell Pipeline Co.'s Zydeco oil pipeline from Houston to Port Neches, Texas, is operating at reduced capacity due to project work at Port Neches, and is expected to remain at reduced capacity until mid to late December, the company said on Thursday.
The Zydeco pipeline system alleviates transportation bottlenecks of crude arriving in Houston from the Eagle Ford, Permian and Bakken regions, according to Shell Midstream Partners' website. The system connects several crude oil pipelines in Houston and Port Neches, and spans over 350 miles (563.27 km), with a mainline capacity of 375,000 barrels per day.
The capacity reduction of the line from Houston to Port Neches sent some U.S. physical crude oil grades surging, dealers said, with Light Louisiana Sweet crude this week firming to $6 a barrel above U.S. crude oil futures, its strongest in more than two years.
At a 50-cent differential, Mars Sour crude was at its strongest since April, Refinitiv Eikon data show.
Related News
Related News
- Keystone Oil Pipeline Resumes Operations After Temporary Shutdown
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Enbridge to Invest $500 Million in Pipeline Assets, Including Expansion of 850-Mile Gray Oak Pipeline
Comments