Crude moves through reversed Seaway pipe

June 7, 2012 at 8:59 AM

HOUSTON, June 7 (UPI) -- The initial crude oil volumes have arrived at a facility in Texas, marking the first time the Seaway pipeline has carried oil southward, companies said.

Enterprise Products Partners and Canadian pipeline company Enbridge Inc. in November agreed to reverse the direction of crude oil on the Seaway pipeline to move oil from the trading hub in Cushing, Okla., to refineries along the southern coast of the United States.

The companies said first deliveries have moved through the reversed pipeline.

"The arrival marks the first southbound delivery of crude by pipeline from the oversupplied Cushing hub, and gives producers access to all of the major refineries in the greater Houston area and Texas City," a statement read.

The companies said the project is operating at a capacity of 150,000 barrels per day. Work is under way to increase that capacity to 400,000 bpd by early next year.

Reversing crude oil deliveries on the 512-mile pipeline is intended to reduce transportation costs and accelerate development of crude oil reserves in North America.

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