Reuters: U.S.: Shell plans HoHo pipeline reversal on line in 2013

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Shell plans HoHo pipeline reversal on line in 2013 May 2nd 2012, 14:20 NEW YORK | Wed May 2, 2012 10:20am EDT NEW YORK (Reuters) - Shell Pipeline, a unit of Royal Dutch Shell, said on Wednesday it plans to begin service in 2013 on the reversal of its Houma-to-Houston pipeline after a successful shipping open season. The project would provide pipeline access to additional crudes across the United States, adding to the infrastructure access to the prolific new oil plays in the Eagle Ford and the Bakken as well as growing crude supplies in the Cushing, Oklahoma, oil hub. Shell's 300,000 barrel-per-day line, which originally carried crude from the Louisiana port city of Houma, the delivery point for some Gulf of Mexico crudes, to Houston refineries will be reversed. The open season for the reversal of the so-called "Ho-Ho" line had been extended by a week to allow prospective shippers to get the go-ahead from their managements. It began on March 8 and ended on April 27. The Ho-Ho reversal will move growing crude production from the inland oil plays in the Eagle Ford, Bakken and Barnett shale regions to Gulf Coast refineries for processing into gasoline and diesel. It will also be able to carry crude from Cushing, Oklahoma, the delivery point of the NYMEX crude contract where landlocked stocks are moving back to record levels, according to the most recent U.S. government data. Several projects are under way to move the glut of low-priced crudes from Cushing down to the U.S. Gulf Coast. This includes TransCanada's controversial Keystone XL pipeline and the Seaway reversal venture between Enterprise Products Partners and Canada's Enbridge, which is expected to start flowing around May 17. If Shell gets regulatory approval and enough customer commitments, the Ho-Ho Reversal will begin service early in 2013, Shell said. (Reporting By Janet McGurty; Editing by Alden Bentley and Maureen Bavdek) Link this Share this Digg this Email Reprints

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