Shell’s Boxer pipeline and Eugene Island Pipeline System (EIPS) in the Gulf of Mexico are expected to resume service sometime after midday on Friday, after operations were suspended Tuesday because of a leak on a third-party lateral pipeline, according to market sources.
The operator of the lateral is expected to mobilize its assets to isolate the affected segment Thursday at around midnight, they said.
The 184-mile EIPS consists of a network of crude oil pipelines (see map below). It has the capacity to deliver about 200 Mb/d of crude from fields in the central GOM. The main pipeline is 20 inches in diameter and delivers 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.
Supplies on EIPS trade as Eugene Island crude, which has a gravity of around 36 API and sulfur content at 1.2%. So, it’s lighter and sweeter than Mars Blend. Mars crude averaged at 65c/bbl under NYMEX crude oil futures in November, according to Link Data Services.
