Zydeco Pipeline Commences Open Season

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Zydeco Pipeline Co. LLC, jointly owned by Shell Pipeline Co. LP and Shell Midstream Partners LP, announced the start of a non-binding open season. Zydeco is seeking indications of interest in firm capacity transportation service on a proposed new pipeline from its Houma terminal to St. James. The larger pipeline is anticipated to replace an existing Zydeco Houma – St. James line to accommodate the demand in excess of the current capacity, which is approximately 270,000 bpd with the existing 18-inch line.
  Upon completion of the proposed pipeline, customers would have more capacity available to transport crude directly between Houma and St. James. All firm capacity commitments on the new line would incur a small premium to the equivalent spot rate. Pending regulatory approval, construction is expected to be completed in early 2018.