Shell cancels Westward Ho pipeline

Royal Dutch Shell has shelved its Louisiana to Texas Westward Ho pipeline after years of delays, reductions in scope and after other new pipelines began flowing, a spokeswoman confirmed yesterday.

"After a thorough review and as a result of changing market conditions, Shell Pipeline Company LP has decided to not proceed with the proposed Westward Ho Pipeline project," spokeswoman Kimberly Windon said.

The proposed project

Proposed in 2011 with a top capacity of 900 000 bpd, Shell said Westward Ho would move Gulf of Mexico and imported crudes from the St. James, Louisiana oil hub to Houston. The leg between Nederland, Texas and Houston would move up to 500 000 bpd and the entire project was targeted to start in late 2015.

In the interim Shell cut the initial capacity and saw a number of other pipeline projects launched in the same area of the US.

In October last year, Shell said Westward Ho was on hold to allow for another open season, and proposed initial capacity rose to 400 000 bpd. Shell pushed the target startup date to late 2017.

Shell did not announce results of the second open season. The company also did not elaborate on cancelling Westward Ho except to say the decision was in line with company strategy to manage projects "to meet ever changing market conditions and optimise resources."

Edited from various sources by Elizabeth Corner

Sources: ReutersYahooLondon South East

Published on 09/09/2015

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