Shell Pipeline said Wednesday it successfully concluded the binding open season period for firm capacity on the Houma-to-Houston pipeline system reversal project (Ho-Ho Reversal).
Based on the commitments, Shell is proceeding with next steps to develop and execute the project. ubject to regulatory approval, the Ho-Ho Reversal is expected to begin service in 2013, the company says.
Shell Pipeline's Ho-Ho Reversal project will 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 Eagle Ford and Bakken shale plays, as well as 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, Shell says.
The Shell project will reverse existing Ho-Ho service in order to connect the Houston and Port Arthur markets in Texas with the Louisiana markets.
The Ho-Ho Reversal could enable the distribution of approximately 300,000 bpd of crude across the region depending upon crudes types shipped, the company says.