Shell Starting Houma-to-Houston Crude Oil Pipeline
Royal Dutch Shell Plc is in the process of starting up its 360,000-barrel-a-day crude oil pipeline that runs between Houma, Louisiana, and Houston, Bill Tanner, a company spokesman, said in an e-mail.
The startup is proceeding as part of a U.S. Transportation Department-approved plan, according to the spokesman. The cause of a leak that shut the line is under investigation, he said.
The conduit, known as the Ho-Ho pipeline system, makes deliveries to refineries in Texas and Louisiana with a combined daily capacity of more than 1.2 million barrels, according to data compiled by Bloomberg.
Shell was issued a “corrective action order” by the Pipeline and Hazardous Materials Safety Administration, a division of the DOT, on the Ho-Ho line, according to an e-mailed statement from the agency.
Shell’s plan to return the line to service under strict guidelines outlined in the order was also approved.
The order includes strict short and long term requirements for Shell to evaluate the integrity of the line, as well as a return to service at a reduced pressure, Julia Valentine, a spokeswoman for PHMSA, said in the e-mail.
The line was shut Nov. 16 after a leak was identified near Vinton, Louisiana, in Calcasieu Parish, according to Shell. About 1,030 barrels of oil spilled from the line, according to an operator estimate, said Damon Hill, a spokesman for the PHMSA.
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