Enterprise Products Partners LP and Enbridge Inc. Saturday said that the Seaway Pipeline has started to accept Crude Oil at the Cushing, OK. storage hub for delivery to the US Gulf Coast.
The bottleneck at the Cushing storage hub where Crude Oil inventories had reached historic highs, but on Thursday, Enterprise & Enbridge announced completion of the reversal of the Seaway pipeline, setting the stage for Crude Oil to flow from the storage hub to the Gulf Coast refining hub. At that time, the companies also indicated they would start shipping Crude Oil on this weekend.
Enterprise & Enbridge controls the pipeline through a 50/50 J-V agreement, said the pipeline will have an initial capacity of 150,000 BPD. Capacity will expand to 400,000 BPD in Q-1 of Y 2013.
The 2 companies announced the reversal project in November 2011 after Enbridge bought ConocoPhillips's (NYSE:COP) 50% stake in the pipeline for $1.1-B.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.