Zydeco announce new agreements with Motiva Enterprises LLC and Sunoco Pipeline, L.P.
Zydeco Pipeline Company LLC (Zydeco) announced new agreements with Motiva Enterprises LLC and Sunoco Pipeline, L.P. to enhance Zydeco connections and capacity in Nederland and Port Neches, Texas. Zydeco is also seeking to add additional pipeline capacity on existing segments to Lake Charles and St. James, Louisiana. The Zydeco pipeline system, jointly owned by Shell Pipeline Company LP (SPLC) and Shell Midstream Partners (NYSE: SHLX), is a batched crude oil system from Houston, Texas to St. James and Clovelly, Louisiana.
The expansion plan includes connecting the Zydeco pipeline, (formerly known as “Ho-Ho”), in Port Neches, Texas to Sunoco Pipeline L.P.’s 30” crude oil pipeline originating in Nederland, Texas. Zydeco also secured additional operational storage that will be available at Motiva’s terminal in Port Neches, Texas. After the completion of these expansion projects, Zydeco’s mainline capacity east of Port Neches will be 375 thousand barrels per day. The additional capacity on the pipeline is expected to be available in the first quarter of 2016.
“The completion of these projects will allow us to optimize our resources, better meet customer needs, and create space in a high demand area for future opportunities. Zydeco is also focused on further enhancing capacity in areas of constraint”, said Michele Joy, Vice President of Zydeco Pipeline Company LLC. “Our efforts are continuously focused on looking for alternatives to increase connectivity and capacity for our customers and the marketplace we serve.”
The Sunoco agreement will provide Zydeco’s shippers and customers with additional shipping capacity and options out of Nederland for the same rate as movements out of Port Neches. The new operational storage in Port Neches will help supplement the extra capacity on the pipeline.
Zydeco is also reviewing additional opportunities to enhance pipeline capacity and improve flow on the Port Neches to Lake Charles 22” segment and the Houma to St. James 18” segment of the pipeline system.