By EDWARD WELSCH
CALGARY -- The Seaway pipeline reversal designed to help
ease the glut in Cushing, Okla., will begin delivering crude
oil to Gulf Coast refineries earlier than expected, a spokesman
for the project said.
"It is running ahead of schedule, and we expect delivery of
crude oil to begin during the later part of May," said Rick
Rainey, a spokesman for Enterprise Products of Houston.
The reversal had been expected to start up by June 1.
On Friday, Enterprise said in a document filed with the
Federal Energy Regulatory Commission that oil on the pipe would
reverse flow southward on or around May 17, though Rainey said
actual deliveries to the Gulf Coast could come at a later
The Seaway reversal has been highly anticipated by the oil
industry because the lack of transportation between the middle
US and the Gulf Coast has caused a supply glut and dropping
prices for North American oil as production surges from Canada
and North Dakota.
The bottleneck is partially responsible for US benchmark oil
prices trading about $15/bbl below international prices.
Seaway is joint project between Enterprise Products
and Enbridge of Calgary that will move as much as 150,000 bpd
this year from the main US oil storage hub of Cushing to
refineries on the Gulf coast, and will be expanded to 400,000
bpd early next year.
It is competing with a rival project by TransCanada that could
move about 700,000 bpd by mid-2013.
Dow Jones Newswires