Enterprise Products Partners to Expand Seaway Pipeline Capacity
NEW YORK (Reuters) – Enterprise Products Partners LP said on Wednesday it would expand its Seaway crude pipeline system capacity to about 950,000 bpd from 850,000 bpd.
The company said it expects to add drag reducing agents (DRAs) to boost capacity on the Seaway 2 line by about 100,000 bpd by September. The Seaway system hauls crude from Cushing, Okla., the delivery point for U.S. oil futures, to Gulf Coast refineries.
Enterprise said it was also evaluating more expansions of the Seaway system and was mulling converting natural gas liquids (NGL) pipelines to crude oil in order to help alleviate pipeline takeaway constraints in the Permian basin.
The production surge in the Permian basin, the biggest oil patch in the United States, has outpaced pipeline takeaway capacity, causing bottlenecks and depressing prices in the region.
Enterprise said total crude oil pipeline transportation volumes were a record 2.1 MMbpd for the second quarter of 2018 compared to 1.5 MMbpd for the second quarter of 2017.
The Midland-to-Sealy crude oil pipeline averaged 545,000 bpd of gross transportation volumes from the Permian basin. That pipeline was recently expanded to 575,000 bpd and is fully subscribed under long term contracts, the company said during its earnings call.
In its Houston terminal alone, the company has over 2 MMbpd of crude export capacity along with about 1 million bpd at its Texas City facility with Enbridge.
U.S. crude exports have surged since Washington lifted a ban in late 2015 and have helped support oil prices as production has climbed to a weekly record of about 11 MMbpd.
In July, Enterprise said it was planning to develop an offshore crude oil export terminal off the Texas Gulf Coast capable of fully loading Very Large Crude Carriers (VLCCs), which have capacities of about 2 MMbbls.
The project has seen demand from international customers as well as U.S. producers, the company said.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments