Shell's Zydeco Oil Pipeline Running at Reduced Capacity
(Reuters) — Shell Pipeline Co.'s Zydeco oil pipeline from Houston to Port Neches, Texas, is operating at reduced capacity due to project work at Port Neches, and is expected to remain at reduced capacity until mid to late December, the company said on Thursday.
The Zydeco pipeline system alleviates transportation bottlenecks of crude arriving in Houston from the Eagle Ford, Permian and Bakken regions, according to Shell Midstream Partners' website. The system connects several crude oil pipelines in Houston and Port Neches, and spans over 350 miles (563.27 km), with a mainline capacity of 375,000 barrels per day.
The capacity reduction of the line from Houston to Port Neches sent some U.S. physical crude oil grades surging, dealers said, with Light Louisiana Sweet crude this week firming to $6 a barrel above U.S. crude oil futures, its strongest in more than two years.
At a 50-cent differential, Mars Sour crude was at its strongest since April, Refinitiv Eikon data show.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- 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
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
Comments