October 19, 2015
Houston, TX - Zydeco Pipeline Company LLC (Zydeco), jointly owned by Shell Pipeline Company LP and Shell Midstream Partners, L.P. (NYSE: SHLX), announced today the start of a Non-Binding Open Season. Zydeco is seeking indications of interest in firm capacity transportation service on a proposed new pipeline from its Houma terminal to St. James. The larger pipeline is anticipated to replace an existing Zydeco Houma - St. James line to accommodate the demand in excess of the current capacity, which is approximately 270,000 barrels per day with the existing 18" line.
"This new capacity would allow us to better serve our customers by providing a consistent and efficient route for transporting their crude while positioning Houma to grow into a more prominent terminal for increased onshore and offshore supply," said John Hollowell, Executive Vice President US Pipeline and CEO Shell Midstream Partners. "We are constantly looking for ways to improve our connectivity and capacity in the region so that we can meet future needs in this high demand area."
The Non-Binding Open Season began today, October 19, 2015 at 10:00AM CDT and will continue until December 11, 2015 at 5:00PM CST. This non-binding open season is intended to solicit expressions of interest from potential shippers. If sufficient customer interest is expressed in the Non-Binding Open Season, Zydeco may proceed to a Binding Open Season. The size of the new line and the amount of new capacity are subject to customer input.
Upon completion of the proposed pipeline, customers would have more capacity available to transport crude directly between Houma and St. James. All firm capacity commitments on the new line would incur a small premium to the equivalent spot rate. Pending regulatory approval, construction is expected to be completed in early 2018.
About Zydeco Pipeline Company LLC: Zydeco Pipeline Company is jointly owned by Shell Pipeline Company LP (SPLC) and Shell Midstream Partners (NYSE: SHLX). Zydeco's Houston to Houma oil pipeline system (sometimes called "Ho-Ho") runs from Houston, Texas, to market hubs in St. James and Clovelly, Louisiana. It provides US Gulf Coast refineries and terminals with pipeline access to additional sources of growing light crude oil production arriving in the Houston market from the Eagle Ford shale, Permian Basin, and Bakken shale and to offshore production landing in Houma, Louisiana.
About Shell Pipeline Company LP: For more than 95 years, Shell Pipeline Company LP has helped meet America's energy needs. We transport more than 1.5 billion barrels of crude oil and refined products annually through thousands of miles of pipelines located in five states.
About Shell Midstream Partners, L.P.L: Shell Midstream Partners is a fee-based, growth-oriented master limited partnership formed by Royal Dutch Shell to own, operate, develop and acquire pipelines and other midstream assets. Shell Midstream Partners' assets consist of interests in entities that own crude oil and refined products pipelines serving as key infrastructure to transport growing onshore and offshore crude oil production to Gulf Coast refining markets and to deliver refined products from those markets to major demand centers.
Please visit www.shell.us/pipeline for more information and any future updates.
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Shell via Globenewswire
Source: Thomson Reuters ONE
(October 19, 2015 - 11:25 AM EDT)
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