Zydeco Pipeline Co. LLC is holding a binding open season through May 31 to test support for an oil pipeline connecting the Gulf Coast to Louisiana refineries.
Houston-based Zydeco, jointly owned by Shell Midstream Partners LP (92.5%) and Shell Pipeline Co. LP (7.5%), is testing support for transportation service on its 350-mile pipeline, which delivers crude to St. James and Clovelly, LA from Houston area terminals including in Nederland.
The Zydeco system has a mainline capacity of 375,000 b/d and serves as an outlet for crude arriving in Houston from the Bakken and Eagle Ford shales and the Permian Basin. It includes the Houston-to-Houma (Ho-Ho) oil pipeline, which was reversed to an eastbound flow by Shell Pipeline in 2013.
"Zydeco is a strategic pipeline and we expect that it will continue to meet demand in the critical U.S. Gulf Coast region," said Shell Midstream CEO Kevin Nichols. "We believe conducting the open season at this time is the best way to maximize the value of the system to both shippers and the pipeline."
More information on the Zydeco open season is available on the Shell Pipeline website.
MPLX LP in February said it plans to invest $2.2 billion this year and $2 billion next year on organic growth projects, including long-haul crude, natural gas and natural gas liquids pipelines to move supply from the Permian. The operator is also reversing the Capline oil pipeline to move crude from Pakota, IL to St. James. The Swordfish Pipeline, a joint venture between MPLX and Crimson Midstream LLC, would transport crude to a storage hub in Clovelly and provide access to other services, including the Louisiana Offshore Oil Port, or LOOP.
Units of Medallion Midstream LLC also launched a binding open season for long-term commitments to support expanded joint tariff service of their oil pipeline systems in West Texas.