HollyFrontier Corp. and Holly Energy Partners LP are collaborating to construct a rail facility that will enable crude oil loading and unloading near HollyFrontier's Artesia and/or Lovington, NM, refining facilities. The rail project, which will be connected to Holly Energy's crude oil pipeline system in southeastern New Mexico, will have an initial capacity of up to 70,000 b/d and will enable access to a variety of crude oil types including West Texas Intermediate, West Texas Sour and Western Canadian Select. The project will provide additional crude oil takeaway options for producers as crude production in the region continues to grow, and an expanded set of crude oil sourcing options for HollyFrontier. Completion is expected by early 2014.
Based on the supplemental commitments, Shell Pipeline is proceeding with next steps to expand capacity of its ouma-to-Houston oil pipeline via the installation of additional pumping capabilities by early 2014. This phase (Phase 3) will bring the ultimate capacity from Houston origins to approximately 250,000 b/d, depending upon crude types shipped. The initial phase of the Ho-Ho reversal was completed in January 2013 to deliver crude oil from connecting pipelines and terminals in East Houston to the Nederland/Port Arthur area. The next phase (Phase 2) of the project is progressing on schedule. Phase 2 will enable crude originating in the Texas markets to reach Louisiana markets (see Shale Daily, July 16, 2012). The fully reversed service will be operational by end of 2013 when Ho-Ho will officially be renamed as the "Houston to Houma" pipeline system, Shell said.