Shell Pipeline Co. said today it received customer support for a new pipeline that would move crude oil from St. James, La. to the refining hubs around Beaumont and Port Arthur, Texas.
The Westward Ho should allow refineries to access the growing supply of domestic and foreign crude oil coming through St. James, the company said. The new pipeline would also complement new storage and logistics infrastructure that are currently being built in the St. James and Clovelly, La. areas.
The new pipeline would allow for the distribution of about 600,000 bbls per day of crude across the region depending upon crude types shipped, and it could begin service by early 2015.
Shell, which announced the pipeline option in September, said it plans to seek binding commitments from shippers for the project in early 2012.
From the Sept. link: The Westward Ho investment will largely depend upon a favorable response to Shell Pipeline’s plans to reverse the Houma-to-Houston pipeline (aka “Ho-Ho”).
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So they’re related. Ho, Ho, Ho.