Shell holds open season bids on Ho-Ho pipeline

Shell Pipeline Co. Monday began accepting supplemental binding open season bids for its Houma-to-Houston pipeline reversal project.

The bids will allow shippers to transport crude from Houston to either St. James or Clovelly, La.

Shell announced plans in 2011 to reverse the flow of its Houma-to-Houston pipeline to take advantage of production from booming shale plays in Texas; when complete, the reversal could send approximately 300,000 barrels per day of crude from Houston to refineries along the Gulf.

Last month it began partial operation, delivering crude from east Houston to the Port Arthur area.

Kim Windon, a spokeswoman for Shell, said the limited open season bids, which began Monday, allow shippers to contract for excess capacity. Bids close at noon central standard time, March 27.

Shell Pipeline’s Ho-Ho reversal project will provide west-to-east pipeline access to additional crudes for refineries across 300 miles of the Gulf Coast, including those from the Eagle Ford and Permian shale plays and the Bakken.

Shell said the pipeline reversal project is intended to complement new pipeline infrastructure being built in the Houston and Nederland area.