Shell shut its Boxer pipeline and Eugene Island Pipeline System (EIPS) on Tuesday after a leak was identified on a third-party lateral. Both systems (see map below) originate in the Gulf of Mexico (GOM).
Shell anticipates the two lines will remain shut through at least Wednesday. The operator of the lateral is working to isolate their pipeline from the Eugene Island network to allow for a safe restart of both Boxer and EIPS systems. At this time, the operator does not have a firm time-frame for valve closure, Shell said. It didn't identify the lateral line or its operator.
The 184-mile EIPS consists of a network of crude oil pipelines. It has the capacity to deliver about 200 Mb/d of crude oil from developments in the central GOM. The main pipeline is 20 inches in diameter and delivers crude oil to pipelines and terminals located onshore in Louisiana, such as those on Caillou Island. Boxer pipeline extends from Green Canyon 19 and connects to EIPS. Some market sources say flows on EIPS currently exceed 65 Mb/d.
Supplies on EIPS trade as Eugene Island crude, which has a gravity of around 32 API and sulfur content at about 1.6%. So, it’s slightly lighter and sweeter than Mars Blend. Mars crude discounts averaged 21c/bbl vs NYMEX crude oil futures for the week ending November 29, according to Link Data Services.
