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Seaway Pipeline ‘Running as Expected’ Despite Terminal Limits

Enterprise Product Partners LP (EPD) said the Seaway pipeline is “running as expected” despite restrictions on how much oil can be received at the pipe’s final terminal in Jones Creek, Texas.

Shippers can take enough oil off the line at Seaway’s other terminal in Katy, Texas, to “make up the difference,” Rick Rainey, a Houston-based spokesman for Enterprise, said today. Rainey declined to specify the rate at which the line is currently running.

The pipeline’s capacity was expanded to 400,000 barrels a day on Jan. 11 in an effort to help relieve the glut of crude oil stored at Cushing, Oklahoma, the delivery point for futures traded in New York. Jones Creek can only accept 175,000 barrels a day, Enterprise said in a bulletin to shippers on Jan. 23.

“Rates are flowing as we would have expected with the additional Katy receipt point that has allowed volumes to continue normally,” Rainey said. “Flows on the pipeline have not been restricted.”

There is capacity on Enterprise’s Rancho pipeline for Seaway volumes taken off at Katy to be delivered into Houston- area refineries, Rainey said.

Enterprise and Enbridge Inc. (ENB) each own 50 percent of Seaway. Enterprise operates the pipeline.

To contact the reporter on this story: Dan Murtaugh in Houston at dmurtaugh@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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