NEW YORK, Feb 25 (Reuters) - Shell Pipeline Co saidon Monday it has begun soliciting bids from shippers for crudeoil transport on a reversed pipeline connecting the Texas andLouisiana 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 theprocess of having its flow reversed so it ships oil from west toeast.
The Ho-Ho pipeline reversal highlights the ongoingrealignment of infrastructure being undertaken by oil companiesto accommodate booming U.S. crude oil production. The pipelineis designed to increase the flow of light sweet crude oilproduction from the Permian, Eagle Ford and Bakken shale playsand Cushing, Oklahoma.
The first part of the reversal project has finished. Oncethe whole project is complete, the fully reversed 350-mile Ho-Hopipeline system will connect the Houston and Port Arthur, Texasmarkets with delivery points in Louisiana and enable about300,000 bpd of crude oil transport, Shell said in a statement.
Shell is hoping to complete the reversal project by the endof 2013, a spokeswoman said.
Shippers have until March 27 to submit bids for crude oiltransport. The solicitation covers routes between Houston andSt. James or Clovelly, Louisiana, Shell said.
(Reporting By Cezary Podkul; Editing by M.D. Golan)
