* Seaway looping to be finished in 2014
* Seaway to run about 850,000 bpd when completed
By Janet McGurty
Aug 1 Enterprise Products Partners LP
said on Wednesday its project to expand the Cushing-to-Houston
Seaway crude oil pipeline from 150,000 barrels per day to
400,000 bpd was on schedule for completion in the first quarter
Speaking to analysts during its second quarter earnings
call, the company said that in addition to the initial
expansion, looping or twinning a parallel pipeline will increase
capacity by 450,000 to be completed by mid 2014.
Total capacity of the reversed line will reach about 850,000
bpd, depending on the mix of crude it carries.
Seaway, the first southbound pipeline to come online to
alleviate the glut of oil in the storage hub of Cushing,
Oklahoma, is jointly owned with Enbridge Inc.
Cushing is the delivery point of the New York Mercantile
Exchange's West Texas Intermediate crude oil futures contract
The line was reversed in mid-May to carry crude stuck in
Midcontinent to the Gulf Coast where the largest concentration
of the nation's refineries operate.
As a result, crude oil storage in Cushing declined to 45.1
million barrels last week from a high of 47.8 million in early
June, according to government data.
The company said the reversed line, which began operation
mid-May, has not gotten a regular mix of light and heavy crudes
The line was supposed to run light, sweet crude until next
year, traders said, but the wide discount between WTI and
Canadian Western Canada Select has made increased heavy
crude deliveries on the line.
Profit on the Canada-to-Cushing leg alone is about $5 a
barrel, traders said, adding that WCS out of Cushing is priced
at about a $13 barrel discount to WTI, far below mainstream U.S.
domestic crudes, and a boon for the complex Gulf Coast
refineries which have been rejigged to run heavier, sour crudes.
Enterprise said that pipeline only began contributing to
earnings in June, the last month of the second quarter. The
company posted a $96 million gross operating margin for the
quarter, a 41 percent rise from the $68 million posted in 2011