ExxonMobil Pipeline Co. and Enbridge Inc. have formed a joint agreement to assess the commercial development of a new pipeline project.
The pipeline will transport crude oil from Patoka, Ill. to Beaumont and onward to Houston, according to Enbridge (NYSE: ENB), a Calgary, Alberta-based energy transportation company.
The company said the project with Houston-based ExxonMobil Pipeline would provide competitive and timely access for United States domestic and growing Canadian supplies of crude oil to be transported from the Patoka pipeline transportation hub to the U.S. Gulf Coast.
The two companies have been in discussions with potential shippers of Canadian crude about the scope, timing and value of the project, Enbridge said. Shipper interest and input will guide the development of the project, which is targeted to be in service as soon as the end of 2010.
Enbridge said a number of potential transportation solutions are being assessed and the specifics of the proposed project would be based on the final economics and shipper support.
ExxonMobil Pipeline Co., an affiliate company of Irving-based Exxon Mobil Corp. (NYSE: XOM), is engaged in transporting crude oil, refined petroleum products, liquefied petroleum gases, natural gas liquids, and chemical feedstocks.
Read more about Enbridge.
ExxonMobil reverse-pipeline project brings Canadian oil to Texas
Houston Business Journal - April 20, 2006
For the first time ever, Canadian crude oil is being delivered to the Gulf Coast through a pipeline that used to flow the other direction.
Mobil Pipe Line Co. an affiliate of ExxonMobil Pipeline Co., successfully reversed an 858-mile, 20-inch diameter crude oil pipeline that had historically run from Nederland, Texas, to Patoka, Ill.
Deliveries of Canadian crude to Beaumont-area refineries began in early April.
The pipeline reversal project gives shippers of western Canadian crude oil direct pipeline access to U.S. Gulf Coast refining markets while also enabling Mobil Pipe Line to optimize a previously under-utilized pipeline, the company says.
Canadian shippers have committed an average volume of 50,000 barrels per day for the next five years, ExxonMobil Pipeline President Mike Tudor said, and he expects that the pipeline will operate on average near its estimated capacity of 66,000 barrels per day of heavy crude.
Before the reversal project, the 648-mile segment of the pipeline from Patoka to Corsicana, Texas, had been idle for several years, while the 210-mile segment from Corsicana to Nederland had been moving predominantly foreign crude north to markets in North Texas and Oklahoma.