Waterborne Imports

Crude oil distribution to Houston area refineries is still being re-plumbed to reflect the ongoing transition to domestic supply. Although plenty of new pipelines provide access for new crude flows into Houston, logistic challenges arise from a crude quality mismatch with refinery configurations. The handling of condensate – whether lightly processed for export or refined in a splitter is also increasing infrastructure overhead. Today we look at new crude infrastructure challenges in the Houston area.

Crude oil distribution to Houston area refineries is still being re-plumbed to reflect the ongoing transition to domestic supply. Estimates of current crude pipeline flows indicate as little as 43% of inbound pipeline capacity is being used - but new projects could add over 1 MMb/d to inbound supplies by early next year. Today we start a new series reviewing how well crude infrastructure is meeting Houston area logistic challenges.