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
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments