Houma

The Ho-Ho reversal project coming online in early 2013 provides an important link between the Texas and Louisiana Gulf Coast markets. Ho-Ho should help to distribute 3 MMb/d of crude supplies arriving over the next two years in the Houston area to refineries throughout the region. All this new pipeline capacity is designed to end the Midwest supply glut. Today we discover how the new supply capacity could initially cause more problems than it solves.

Shell is progressing toward early 2013 completion of the Houston, TX to Houma, LA (Ho-Ho) pipeline reversal. Bakken and Canadian Crude via Cushing, Eagle Ford crude from South Texas and Permian Basin crude from West Texas pipeline projects will all be showing up in the Houston area early next year via new or expanded pipeline projects. The Ho-Ho reversal will provide a missing link for these crudes to flow seamlessly to Louisiana Gulf Coast refineries. Today we describe the Ho-Ho project and its significance.