Shell Pipeline’s Zydeco oil pipeline that runs from Houston to Port Neches in Texas is operating at reduced capacity.
Reuters has reported that due to project work at Port Neches the key link is expected to remain at reduced capacity until mid to late December.
The Zydeco pipeline system alleviates transportation bottlenecks of crude arriving in Houston from the Eagle Ford, Permian and Bakken regions, according to Shell Midstream Partners' website.
The system connects several crude oil pipelines in Houston and Port Neches, and spans over 350 miles (563.27 km), with a mainline capacity of 375,000 barrels per day.
The capacity reduction of the line from Houston to Port Neches sent some US physical crude oil grades surging, dealers said, with Light Louisiana Sweet crude this week firming to $6 (€5.79) a barrel above US crude oil futures - its strongest in more than two years.
At a 50-cent differential, Mars Sour crude was at its strongest since April, Refinitiv Eikon data show.
Key US oil pipeline operating at reduced capacity
