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Enterprise: Seaway pipeline bottleneck to end in 4th quarter


HOUSTON -- Enterprise Products Partners said the bottleneck affecting its Seaway crude oil pipeline should end by the fourth quarter after Enterprise finishes a lateral pipeline connecting Seaway to its ECHO storage terminal.

Enterprise increased Seaway' s capacity to 400,000 bopd earlier this month. But the company was soon forced to limit the flow to the Jones Creek terminal near Port Arthur to 175,000 bopd because the terminal filled to capacity.

Enterprise has said that the biggest reason behind the build up was a cut in demand from Phillips 66' s refinery in Sweeny, Texas, a major customer for oil from Seaway.

Seaway should be back to normal by the fourth quarter after Enterprise finishes construction of a pipeline connecting Seaway to its new ECHO outside of Houston, Enterprise COO Jim Teague said. Enterprise finished construction of 750,000 bbl of storage at ECHO in November and plans to add another 900,000 bbl of storage by 2014.

Enterprise, which owns half of Seaway with partner Enbridge Energy, reversed Seaway' s flow last year to help drain the glut of oil accumulating at the Cushing, Okla., oil hub. A flurry of oil production caused by new drilling methods dramatically increase the Cushing oil supply, but no pipelines existed to bring that oil to the Gulf Coast refining belt.

Houston-area refiners are still able to receive shipments originally scheduled for Jones Creek at the terminal in Katy, Texas, the company said.

Dow Jones Newswires



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