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Cushing, OK-to-Houston Crude Pipeline Plan Suspended

Enterprise Products Partners LP and Entergy Transfer Partners LP for now have abandoned plans to construct a 584-mile crude oil pipeline from Cushing, OK, to Houston, Enterprise said Monday.

"While the recently completed binding open commitment period generated significant shipper interest, agreements with the capacity and terms necessary to commercially support the project as planned were not sufficient," the partnership said. "Enterprise remains committed to developing a crude oil pipeline from Cushing to the Gulf Coast and will continue to work with potential shippers to secure additional support for the project."

Last spring the partners agreed to form a joint venture to design and construct the pipeline, which would allow greater access to the U.S. Gulf Coast-area refining complex and add about 500,000 bbl of storage capacity at new facilities to be constructed and owned by the joint venture at Enterprise's new Houston crude oil terminal (see Shale Daily, April 27).

At the time the project was announced it was said that the pipeline could carry crude production from the Midcontinent's emerging shale plays.

A separate crude pipeline project, TransCanada Corp.'s Keystone Pipeline, includes a leg that would run from Cushing to Houston and Port Arthur, TX, as its third phase. The overall project would run from Alberta to the U.S. Gulf Coast. In April Energy Transfer Senior Vice President Roy Patten told NGI's Shale Daily that the Enterprise-Energy Transfer project would be a short-term competitor to TransCanada's plans, but longer term there could be room for both projects.

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