Shell 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).
The indicative response from shippers for the Houston to St. James, La. route was greater than the pipeline space offered, the company said.
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 early 2012.
Shell Pipelines Ho-Ho Reversal project would provide pipeline access to additional crudes across the 300 miles of the US Gulf of Mexico refining complex.
Those crudes 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.
Additionally, the Ho-Ho Reversal project would complement the new pipeline infrastructure that is currently being built to the Houston area, according to the company.
Shell Pipelines project would reverse the existing Ho-Ho service to connect the Golden Triangle markets in Texas with the Mississippi River markets in Louisiana.
The Ho-Ho Reversal could enable the distribution of approximately 300,000 bpd of crude across the region depending upon crudes types shipped.
Subject to 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.