Shell considers reversal of Houma-to-Houston pipeline

Shell Pipeline Company said it might reverse the flow direction of its Houma-to-Houston pipeline to take advantage of production from booming shale plays in Texas, according to a company press release.

The Ho-Ho pipeline reversal would connect producers in Houston and Port Arthur to Louisiana markets. The pipeline would distribute about 300,000 barrels of crude oil per day across 300 miles Gulf of Mexico coastline in Texas and Louisiana, Shell said. The announcement specified benefits of accessing production in the Barnett, Eagle Ford and Bakken shale plays.

If the project moves forward, Shell expects the new service would begin in early 2013, subject to regulatory approval.

“Shell Pipeline is exploring the best use of its asset, acquired in 2002,” spokeswoman Jill Davis said in an email. “And given the crude supply coming to Houston and the pipeline infrastructure being built to support the supply, Shell is considering the reversal as potentially the highest value use of its asset.”