Houston-based Spectra Energy Corp. and Spectra Energy Partners LP expanded their oil pipeline network running from Guernsey, Wyo., to Patoka, Ill., Spectra Energy said Oct. 10.
The market demand for light sweet domestic crude oil is “strong,” the company added, noting that at Patoka, shippers could access Midwestern and Gulf Coast markets. Eastern refiners might benefit from the expansion in the future, the company added.
“We’ve had very strong indications of interest from shippers and believe that producers will achieve higher netback prices by accessing high value markets via this expansion,” said Greg Ebel, Spectra Energy’s chairman, CEO and president.
“We are pleased by the strong demand we have seen for our existing crude oil system capacity. This success is driving our commitment to maximize our growth through organic expansion, and we believe this new option will be a welcome solution for customers wanting to move domestic oil to key U.S. markets,” he added.
In first-quarter 2015, there will be a binding open season. The expansion is scheduled to be online in 2017 with 400,000 barrels per day of initial capacity, the company said.
Recommended Reading
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”
President: Financial Debt for Mexico's Pemex Totaled $106.8B End of 2023
2024-02-21 - President Andres Manuel Lopez Obrador revealed the debt data in a chart from a presentation on Pemex at a government press conference.
Thanks to New Technologies Group, CNX Records 16th Consecutive Quarter of FCF
2024-01-26 - Despite exiting Adams Fork Project, CNX Resources expects 2024 to yield even greater cash flow.
Cheniere Energy Declares Quarterly Cash Dividend, Distribution
2024-01-26 - Cheniere’s quarterly cash dividend is payable on Feb. 23 to shareholders of record by Feb. 6.