Harvest Pipeline, Refugio, Texas, has reported a project underway to build a pipeline to deliver crude oil from the Eagle Ford to an existing terminal on the Corpus Christi Ship Channel.
“We are building a line with segments of 12 inches and 16 inches in diameter, with initial capacity of more than 100,000 barrels per day” said Steve Jacobs, president of Harvest. “The line can be expanded to 150,000 to 200,000 barrels per day, depending on producer interest.”
Shell Trading Company has signed a capacity agreement for a majority of the space on the pipeline to gather and transport Eagle Ford crude oil to downstream markets. The pipeline will enable Shell Trading to offer attractive transportation solutions in the rapidly expanding Eagle Ford crude oil production region.
All pipe has been ordered, right-of-way acquisition has made good progress and first construction will begin in July. The total 140-mile line will be operational in early 2012.
“Producers have shown very strong support for this line and the market solutions it offers,” according to Fred Muck, vice president of business development at Harvest. “We have firm commitment for the capacity of this line.”
The pipeline will originate at the Gardendale terminal of Velocity Midstream and will include direct connections to producers along its route. The destination terminal in Corpus Christi is adding tankage and includes a deep water dock in addition to a barge terminal.
Across all its systems in the Eagle Ford, Harvest will have total pipeline capacity of approximately 250,000 barrels per day providing producers access to multiple crude buyers and multiple markets. Their systems can be expanded to more than 350,000 barrels per day as the trend develops.
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