Posted on 01/19/2015 8:36:44 AM PST by thackney
Canada-based Enbridge Inc. (NYSE: ENB) and Houston-based Enterprise Products Partners LP (NYSE: EPD) celebrated Jan. 16 the beginning of delivery of Canadian tar sands crude oil to the Houston area through a new pipeline system.
While the Keystone XL pipeline remains mired in political debate, Enbridge and Enterprise on Dec. 21 delivered the first high-volume Canadian crude to Freeport, Texas through the newly completed Seaway Pipeline system twin loop and the new Flanagan South pipeline. The two pipeline systems connect in Cushing, Oklahoma, with the new Seaway loop delivering up to 450,000 barrels of oil a day of Canadian crude — currently about 250,000 barrels daily — to Freeport. Jim Teague, Enterprise executive vice president and COO, called the effort a "heck of a marriage" between Enbridge with its Canadian crude "supply aggregation" and Enterprise with its "distribution system" to every refinery in the Texas City, Houston, Beaumont and Port Arthur regions.
"With all due respect, no other contemplated project can say that," Teague said.
Just prior, Teague had said he didn't want to comment on TransCanada Corp.'s (NYSE: TRG) Keystone XL project, which would also deliver Canadian crude to Texas and has been stalled in environmental and political controversies.
Canada estimates the completion of these pipelines is expected to help double the amount of Canadian oil supplied to the Gulf Coast each day — from just over 200,000 barrels per day currently, to more than 400,000 barrels per day during 2015.
Enbridge President and CEO Al Monaco said the partnership and pipeline system represents a strong move toward "North American energy security." "Make no mistake about it. Canadian crude is in the game now in the Gulf Coast, and we will compete," Monaco said, calling it the "marriage of Canadian crude … with U.S. refining capability."
The "marriage" Monaco cites refers to the bulk of the Gulf Coast refineries that are built to operate off of heavy crude feedstock, which Canada has, compared to the lighter crude that is produced from the Texas shale plans in the Eagle Ford and Permian Basin.
Enbridge and Enterprise both own 50 percent of the 512-mile Seaway loop that ends at Enterprise's Jones Creek storage and terminal facility in Freeport. Enbridge's South Flanagan pipeline completed late last year runs from Illinois to Oklahoma.
Enbridge already has its Alberta Clipper pipeline from Canada to Wisconsin, which brings the oil into the U.S., but a planned expansion of it has hit federal delays and is awaiting a presidential permit in the U.S.
Cool news. Thanks.
BTW, made some money on this last year and Enterprise was paying handsomely.
Keystone bypass?
In addition to the need for Keystone, not instead of...
Something for Steve to look into?
Thank you! He’s enjoying his time off for now and is okay with being warm and out of the weather. (-:
I hope all is well with you and with yours!
- Megan
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