Shell's Ho-Ho or Houma to Houston Pipeline could be reversed to help move Eagle Ford Shale crude oil east of Houston and further into the Gulf Coast refinery complex. If agreed, the reversal will add 300,000 barrels per day of flowing capacity from Houston to Louisiana by early 2013.
Shell Pipeline Co LP (RDSa.L) said on Thursday it was considering reversal of the Houma-to-Houston pipeline system to ship Eagle Ford crude and other oils eastward to the U.S. Gulf Coast refining hub.
The reversed so-called Ho-Ho line would flow 300,000 barrels per day of crude from the Houston and Port Arthur, Texas, markets to the Louisiana markets by early 2013, the company said in a release.
"Shell Pipeline's Ho-Ho reversal would provide pipeline access to additional crudes across the 300 miles (483 km) of the U.S. Gulf of Mexico refining complex," a news release said.
"Those crudes include the domestic crude oil production increases in Texas and the midcontinent including the Barnett, Eagle Ford and Bakken Shale plays, as well as the growing crude supplies in the Cushing, Oklahoma, area," the release said.
Read the full news release at Reuters.com