Fuel Fix
Crude pipeline planned from Cushing to Houston

Friday, September 30, 2011

Enterprise Products Partners and Enbridge said Thursday they plan to design, construct and operate a new pipeline to move oil from the oversupplied hub at Cushing, Okla. to Gulf Coast refineries, giving the planned Keystone XL pipeline a bit of competition.

The proposed Wrangler Pipeline will be a 36-inch diameter pipe starting at Enbridge’s existing Cushing terminal and running about 500 miles to the coast, largely following existing pipeline corridors.

It will end in Enterprise’s ECHO crude oil storage terminal in southeast Harris County. From there it will be able to feed refineries in Texas City, Pasadena/Deer Park, Baytown and others along the Houston Ship Channel.

Initially the pipeline will have the capacity to transport up to 800,000 barrels per day but will be designed to handle even more volume in the future.

Rusty Braziel, vice president of marketing for Bentek Energy, said Wrangler could compete with the third leg of the Keystone project will is aimed at linking Cushing, Houston and Port Arthur.

“But based on Bentek’s outlook for light crude oil production from the major shale and tight crude plays like Bakken, Eagle Ford, Anadarko, Permian and Niobrara – plus imports of heavy crude from Canada, there should be more than enough supply for both of these projects,” Braziel said. “Both Wrangler and Keystone are great news for the refining industry along the Gulf coast.”

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