Jan 2 A major pipeline expansion that aims to
ease the bottleneck at Cushing, Oklahoma that has depressed U.S.
crude prices should pump at full rates from the end of next
week, the backers of the project said on Wednesday.
Enterprise Products Partners LP and Enbridge Inc
said service on the Seaway pipeline that runs between
Cushing and the U.S. Gulf Coast had been suspended to complete
the work needed to expand the capacity of the 500-mile pipeline
to 400,000 barrels per day.
"In order to complete the remaining pump station
connections, transportation service has been suspended on the
500-mile, 30-inch diameter pipeline and is expected to resume
operations at full rates by the end of next week," the companies
said in a joint statement.
Seaway can currently move 150,000 bpd of crude out of
Cushing, the delivery point for West Texas Intermediate crude
oil futures, to refineries on the Texas Gulf Coast.
Insufficient pipeline capacity at Cushing has made it
difficult for traders to ship burgeoning inland U.S. oil
production to more profitable markets on the U.S. Gulf Coast.
As a result, West Texas Intermediate crude oil futures have
traded at a substantial discount to other grades of a comparable
quality such as North Sea Brent crude.