Operator Genesis Energy restarted its Cameron Highway Oil Pipeline System (CHOPS) on Monday after completing maintenance that had been delayed a few times.
One plan was to complete the 2-week downtime in H1 October. After a few delays, CHOPS eventually went offline on October 26. Thereafter, work was extended because of weather-related issues.
The 380-mile CHOPS connects GOM production to refineries and terminals in Port Arthur and Texas City, Texas (red line in map below). It has the capacity to transport 500-600 Mb/d of supplies. In Q3 2024, flows averaged just above 300 Mb/d, broadly unchanged from a year ago, according to a company SEC filing. Oil shipped on CHOPS is traded as Southern Green Canyon crude (SGC).
The extended outage of CHOPS appears to have had some impact on SGC differentials. For the week ending November 15, SGC prices averaged at 36c/bbl discount to Nymex oil futures compared with $1.42/bbl discount for the week ending October 11.
