Genesis Energy oil pipeline unlikely to be restored before October

A U.S. Gulf of Mexico crude oil pipeline owned by Genesis Energy LP is not expected to be fully restored before Oct. 1, the company announced, after destructive storms tore through the coastal region late last month.

Houston-based Genesis is working to get its 380-mile (610-km) Cameron Highway Oil Pipeline System (CHOPS) up and running again weeks after Hurricane Laura and a lesser storm passed through the area and forced mass production shut-ins.

Crude oil shipped on the CHOPS, which is delivered to the Texas coast and sold as Southern Green Canyon, is being rerouted and delivered into the Poseidon pipeline system or the Auger pipeline, a company spokesperson said.

"Based upon continuing data collection, analysis and physical tasks required to be undertaken, it would appear that CHOPS is unlikely to resume normal operations before Oct. 1," the company said in a notice to shippers.

Argus first reported the production delay.

The pipeline itself was not damaged but a platform in the system was affected by the storms, the company said.

(Reporting by Laila Kearney Editing by Marguerita Choy)

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