Pipeline said on Thursday that it has received a very
encouraging response to its non-binding solicitation of
interest period for capacity on its proposed Houma-to-Houston
pipeline system reversal project (Ho-Ho Reversal).
indicative response from shippers for the Houston to St. James,
La. route was greater than the pipeline space offered, the
Based on this
favorable response, Shell Pipeline is planning to seek binding
firm capacity commitments from shippers for this project through an open season in
Pipelines Ho-Ho Reversal project would provide pipeline
access to additional crudes across the 300 miles of the US Gulf
of Mexico refining complex.
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, Okla. area.
the Ho-Ho Reversal project would complement the new pipeline
infrastructure that is currently being built to the Houston
area, according to the company.
Pipelines project would reverse the existing
Ho-Ho service to connect the Golden Triangle markets in Texas
with the Mississippi River markets in Louisiana.
Reversal could enable the distribution of approximately 300,000
bpd of crude across the region depending upon crudes types
customer commitments and regulatory approval, the Ho-Ho
Reversal is expected to begin service by early 2013.
Shell previously said a positive response to the
proposed Ho-Ho Reversal would make it more likely to build
another new pipeline segment (Westward Ho) in the region.