Enterprise Pipeline Opens Oil Route to Cushing Storage Hub
Thursday, April 30, 2020
Enterprise Products Partners L.P. (Enterprise) will offer the northbound capacity of its Seaway pipeline to oil producers seeking storage options beginning on May 1. The arrangement provides for contingent, subordinated service to utilize unused capacity from Enterprise’s Katy Station in Fort Bend county, Texas, to Cushing, Oklahoma.
“Given the current turmoil in the crude oil market, including impacts on both refinery and export demand, there is strong market interest to access the Cushing storage market,” Enterprise said in a filing on April 13 with the U.S. Federal Energy Regulatory Commission (FERC).
According to the U.S. Energy Information Administration, about 54% of total U.S. crude working storage capacity was full as of April 3. Seaway Crude Pipeline Company LLC is a 50/50 joint venture owned by affiliates of Enterprise Products Partners and Enbridge Inc. In addition to the pipeline that transports crude oil from Cushing to the Gulf Coast, the Seaway system is comprised of a terminal and distribution network originating in Texas City, Texas.
The northbound service will not impact Seaway’s current service to customers. Seaway remains fully committed to fulfilling all shipper demands to move crude oil from Cushing to the Houston area without interruption.