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2012 March 2   13:38

Seaway to link to Enterprise terminal via new pipe

Enterprise Products Partner and Enbridge Inc are planning to build a pipeline to move crude to Enterprise's ECHO terminal that has come down the reversed Seaway pipeline to its terminus in Jones Creek, Texas, Reuters reports. "The reversed line will bring crude to Jones Creek, northwest of Freeport," said Brad Shamla, an executive with Canada's Enbridge.

Shamla said the pipeline will be about 40 miles (65 km) long.

"We are shipping crude out over a dock to other destinations on the Gulf Coast," he said.

Another piece of pipe will be laid from the ECHO terminal, along the Houston Ship Channel, to the Port Arthur area of Texas on the border of Louisiana.

Shamla said that pipeline will be about 80 miles in length and be done in 2014.

The purging of the 500-mile (800-km) Seaway pipeline is ahead of schedule. The pipeline will begin by carrying 150,000 barrels per day by June 1 from the oil hub of Cushing, Oklahoma, to Gulf Coast refineries, said Shamla.

The pipeline is the first of several projects to siphon the glut of crude oil sitting in Cushing to the refineries along the Gulf Coast.

The reversed Seaway pipeline capacity is expected to grow 400,000 bpd in 2014 but could increase more if the current open season seeking more firm shipping commitments is successful. .

Enterprise's ECHO terminal will be ready to receive the oil. When completed, the terminal will hold 6 million barrels.

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