From Houston Business Journal:
A subsidiary of Houston-based Genesis Energy LP (NYSE: GEL) has initiated an open season to gauge interest for a new pipeline project just south of the city.
The open season is seeking binding commitments on crude transportation with origin points at the Department of Energy Pipeline or the Cameron Highway Offshore Pipeline System, according to a Genesis press release. Delivery points would be at terminals in Webster, Texas, and Texas City.
The project involves the construction of four miles of new pipeline connected to its existing Texas City infrastructure, according to the press release. That would connect the existing network of pipelines into the new origin points.
“Our Texas pipeline system will provide Gulf of Mexico shippers a northbound delivery option beyond the Texas City refining market,” said Ryan Sims, Genesis’ vice president of finance and corporate development. “Given our existing asset base in Texas and the Gulf of Mexico, Genesis was a logical fit to provide this service.”
The open season started Feb. 21, and it will conclude on March 8, according to the release.
The move comes a few days after Genesis announced that it would be pushing back the in service date on its existing Texas pipeline system — the same one to which this addition would connect. That project, which includes reversing a pipeline that currently moves crude from Webster to Texas City so that the volumes flow north instead of south, is now expected to enter service during the second quarter. Its original start date was at the end of 2016.
Genesis expanded its office in downtown Houston in 2016, and the year before that, it paid $1.5 billion to buy an offshore midstream business from Houston’s Enterprise Products Partners LP (NYSE: EPD).
