HOUSTON--(BUSINESS WIRE)--Feb. 12, 2020-- Seaway Crude Pipeline Company LLC (“Seaway”) today announced an extension of a binding open season currently under way for committed service on expansion capacity of its system originating in Cushing, Oklahoma and extending to the Texas Gulf Coast. The open season, which began December 16, 2019 with the intent to close on February 14, 2020, is being extended to allow interested shippers to complete internal review processes. Seaway is also considering shipper feedback on the open season terms and may adapt the terms to allow for the inclusion of additional crude types, among other modifications. Seaway will promptly inform all interested shippers with open season documents of any changes, as well as provide notice 30 days prior to the new close.
The cost-efficient expansion would debottleneck and optimize the system, principally through pump upgrades. The expansion could provide an incremental 200,000 barrels per day (“BPD”), or more, of crude oil capacity and include further quality enhancements in the segregation of heavy and light crude shipments. Further capacity expansion is possible, depending on customer demand. Up to 100,000 BPD of initial crude expansion capacity could be available beginning in the second half of 2020, with the expansion in full service in 2022. The final capacity for committed and uncommitted service would be determined during the open season. Seaway is offering a competitive fee schedule, starting at $0.99 per barrel for light crude oil pipeline transportation from Cushing. Fees will vary depending on volume, destination, and term.
Seaway features access to a fully integrated midstream network of pipelines, storage facilities, and export terminals along the Gulf Coast and provides connectivity to every refinery in Houston, Freeport, Texas City, and Beaumont/Port Arthur.
Additional details, including the open season terms and the required transportation services agreement form, will be distributed to potential shippers who execute a confidentiality agreement. Interested shippers should direct commercial inquiries and requests for information to Shane Sullivan at (713) 381-6550 or email@example.com.
Seaway Crude Pipeline Company LLC is a wholly owned subsidiary of Seaway Crude Holdings LLC, which is a 50/50 joint venture owned by affiliates of Enterprise Products Partners L.P. (NYSE: EPD) and Enbridge Inc. (NYSE/TSX: ENB). In addition to the pipeline that transports crude oil from Cushing to the Gulf Coast, the Seaway system includes a terminal and distribution network originating in Texas City, Texas, which serves refineries locally and in the Houston area, and dock facilities at Freeport and Texas City. For additional information, please visit www.seawaypipeline.com.
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission and “forward-looking information” within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”). All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and Enbridge expect, believe or anticipate will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. Although Enterprise and Enbridge believe that the forward-looking statements included herein are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risks and uncertainties included in the reports filed with the Securities and Exchange Commission by Enterprise and Enbridge, respectively, and in the filings made by Enbridge with Canadian securities regulatory authorities. While Enterprise and Enbridge make these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those expected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, neither Enterprise nor Enbridge intends to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
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Source: Seaway Crude Pipeline Company LLC
Randy Burkhalter, Investor Relations (713) 381-6812 or (866) 230-0745
Rick Rainey, Media Relations (713) 381-3635
Jonathan Morgan, Investor Relations (403) 266-7927