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Shell gearing to repair shut down Louisiana pipeline

BY ANGEL GONZALEZ

HOUSTON -- Shell is still preparing to repair a shut down oil pipeline offshore Louisiana that was shut down over the weekend, a spokeswoman said Tuesday.

The Caillou to Houma pipeline was shut down late Saturday after a light sheen was seen near a pump station in Lake Barre, off the state' s coast. "We believe the origin of the sheen is a small release" from the 16-in. crude pipeline, spokeswoman Kimberly Windon said in an e-mail.

The sheen disappeared on Sunday, but the company deployed a response crew and boom around the point where the crude leaked. "Our response team will continue to closely monitor the release site while preparations are made to safely inspect and repair the pipeline, as soon as possible, weather permitting," Ms. Windon said, adding that the cause of the incident is being investigated.

Analysts with Tudor, Pickering, Holt & Co. said that the pipeline system has a capacity to move 170,000 bopd from the Gulf of Mexico to a Shell terminal in Houma, La.

Dow Jones Newswires

 

03/26/2013

 

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