Genesis Energy’s Cameron Highway Oil Pipeline System (CHOPS) is expected to be shut in October for two weeks of planned work. It’s not clear if the entire system will be down all at once, or if segments will be worked on in phases.
CHOPS is a 380-mile, 24- and 30-inch-diameter crude oil pipeline that extends along the outer continental shelf of the Gulf of Mexico, delivering offshore production to refineries and terminals located in Port Arthur and Texas City, Texas. Oil shipped on CHOPS is traded as Southern Green Canyon crude (SGC), a medium-heavy, high sulfur crude that is well sought by refiners along the U.S. Gulf Coast (USGC) and overseas markets.
The pipe outage would be coming at a time when the OPEC+ alliance will be in the midst of continuing with its production cuts, although its members have indicated plans to unwind some of them. If the group agrees to relax their output curtailments, it is expected to start later this year and be conducted in phases extending into next year.
