Shell seeks bids for crude oil flows on reversed Ho-Ho pipeline

NEW YORK: Shell Pipeline Co said on Monday it has begun soliciting bids from shippers for crude oil transport on a reversed pipeline connecting the Texas and Louisiana markets.

Shell is offering transport for up to 75,000 barrels-per-day (bpd) on the Houma-to-Houston (Ho-Ho) pipeline, which is in the process of having its flow reversed so it ships oil from west to east.

The Ho-Ho pipeline reversal highlights the ongoing realignment of infrastructure being undertaken by oil companies to accommodate booming US crude oil production. The pipeline is designed to increase the flow of light sweet crude oil production from the Permian, Eagle Ford and Bakken shale plays and Cushing, Oklahoma.

The first part of the reversal project has finished. Once the whole project is complete, the fully reversed 350-mile Ho-Ho pipeline system will connect the Houston and Port Arthur, Texas markets with delivery points in Louisiana and enable about 300,000 bpd of crude oil transport, Shell said in a statement.

Shell is hoping to complete the reversal project by the end of 2013, a spokeswoman said.

Shippers have until March 27 to submit bids for crude oil transport. The solicitation covers routes between Houston and St. James or Clovelly, Louisiana, Shell said.