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Shell: Capline ships stored oil, offshore delayed

Reuters UK

UPDATE 1-Shell: Capline ships stored oil, offshore delayed

Mon Sep 15, 2008 12:22am BST

(Adds updated information from Shell, description)

HOUSTON, Sept 14 (Reuters) – The Capline crude line is shipping oil from storage after Hurricane Ike, but normal flows await Gulf of Mexico production and tanker unloadings at the Louisiana Offshore Oil Port, Shell (RDSa.L: Quote,ProfileResearch) said on Sunday.

“We continue to make crude oil deliveries from St. James, Louisiana,” a news release said. “We’re ready to deliver at scheduled rates as soon as additional crude supply becomes available.”

Shell said it was evaluating a potential full restart schedule for the 632-mile system from Louisiana to Patoka, Illinois. At the northern end, capacity is more than 1.1 million barrels a day.

Capline, run by Shell, but owned by a group of companies, carries most of the imported cargoes delivered by ships to LOOP and U.S.-produced oil from the Gulf of Mexico to refineries in the Midwest.

“It depends on the supply we’re getting into those pipelines as to when they’re restarting,” a Shell spokeswoman said.

As of Sunday, the U.S. Minerals Management Service said 99.6 percent of Gulf oil output, which was 1.3 million barrels a day before the storm, remained shut.

LOOP hoped to being unloading ships by late Sunday as sea conditions improved in the wake of Ike, a spokeswoman said. (Reporting by Bruce Nichols; Editing by Andre Grenon)


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