Seaway oil pipeline reversal, expansion on course

Having tested demand, Calgary, Alberta-based Enbridge has announced that it intends to go through with a plan to reverse the course of the Seaway oil pipeline between Houston, Texas, and Cushing, Oklahoma.

As oil production in the northern Great Plains and central Canada continuing to rise, the demand for oil transportation to the oil refineries along the Gulf Coast is growing along with it. However, at present no pipelines extend from the important oil centers in Oklahoma to the refineries in Houston.

MarketWatch reports that Enbridge completed the purchase of a 50 percent stake in the Seaway pipeline from ConocoPhillips for $1.15 billion on Tuesday. In concert with Enterprise Products, which owns the other half of the pipeline, the company plans to add an additional pipeline along the course of the Seaway, a project that is expected to cost around $1.9 billion and be completed by mid-2014.

Until then, the Seaway plans to reverse course in the second quarter of 2012, reaching around 150,000 barrels per day midway through next year and around 400,000 barrels per day by the start of 2013.

PennEnergy's Research area offers projections for oil pipeline investment in coming years.



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