Shell hopes to reroute Auger pipeline in US Gulf

Sept 22 (Reuters) - Shell Oil (RDSa.L) said on Monday it was hoping to reroute oil and natural gas flows along its Auger pipeline in the Gulf of Mexico around the hurricane-damaged Eugene Island platform, and was working to restart its Central Gulf gathering system.

The Auger pipeline system has a capacity to carry over 100,000 barrels of oil and 415 million cubic feet of natural gas per day, and the Central Gulf gathering system connects oil and gas fields in the Eugene Island and South Marsh Island areas to shore.

"Plans are in development to reroute the Auger pipeline system around the damaged Eugene Island 331 Platform," Shell said in a press release. "Work is progressing to restart the Central Gulf gathering system."

Nearly 80 percent of the Gulf of Mexico's 1.3 million bpd of crude and 65 percent of its 7.4 billion cubic feet per day of natural gas remains shut in the wake of Hurricane Ike.

The company added its Eugene Island pipeline remains down pending repairs at a third party pump station and its Boxer pipeline system remained shut, waiting for repairs on the Eugene Island system.

The company said its Cougar pipeline also remained down due to ongoing platforms repairs.

On shore, Shell said its Capline oil pipeline system was running "generally" at scheduled rates while its Houston-to-Houma pipeline remained slowed in the western portion, including around Houston and Port Arthur.

(New York Energy Desk, 646-223-6050)