NGI - Seaway Tests Support for Oklahoma-to-Gulf Coast Crude Expansion

November 25, 2019 – NGI

Seaway Tests Support for Oklahoma-to-Gulf Coast Crude Expansion

By Leticia Gonzales

Seeking to boost crude oil deliveries to the Gulf Coast, Seaway Pipeline is gauging interest for a proposed 200,000 b/d expansion of its 500-mile, 30-inch diameter system stretching from Cushing, OK, to the Freeport, TX, area. […]

[…] Seaway’s fee schedule is starting at 99 cents/bbl for light crude oil pipeline transportation from Cushing, OK, although fees will vary depending on volume, destination and term. The system also includes a terminal and distribution network that starts in Texas City, TX, and serves refineries locally and throughout the Houston area, as well as dock facilities in Freeport and Texas City.

Although crude production growth in the shale basins has been slowing this year, overall output continues to increase, according to RBN Energy LLC. Gulf Coast crude exports have expanded almost eightfold in the past three-plus years, from slightly under 300,000 b/d on average in 2016 to an average 2.6 million b/d in the first 10 months of 2019. […]

[…] Announced plans for pipelines to accommodate increased production from the Permian Basin, the Rockies and North Dakota, if all built, would deliver an additional 1.7 million b/d of crude to the Beaumont-Port Arthur, TX, (BPA) and Houston areas by the end of 2021, according to RBN. Also adding to BPA supply is Energy Transfer LP's proposed 500,000 b/d Ted Collins pipeline linking the Houston Fuel Oil Terminal, which the company will acquire next month as part of its planned purchase of SemGroup, to Nederland, TX.

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