Shell Midstream Partners LP (NYSE: SHLX) introduced that it’s contemplating increasing its 163-mile-long Mars crude oil pipeline within the Gulf of Mexico, the corporate stated in a Thursday earnings name, as the present system nears capability in line with Reuters.

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SHLX, fashioned by Shell to personal and function pipelines and different midstream belongings, stated that curiosity from producers remains to be sturdy. The firm stays bullish on the Gulf of Mexico.

Gulf of Mexico oil of the bitter medium crude selection—together with the Mars grade from Shell and BP’s Gulf of Mexico platform–filled some gaps left by the absence of heavy oil from Venezuela, which US refiners used till about March 2019, when US refineries stopped importing from the sanctioned Latin American nation.

With provides of Mars tightening as US refiners turned to it, starved of Venezuelan crude oil, the value of the grade elevated in early 2019, however has since fallen off.

The present pipeline has the capability to maneuver between 400,000 and 600,000 barrels per day of oil produced in Mississippi Canyon space to the LOOP salt dome caverns in Clovelly, Louisiana. In the Mississippi Canyon space, the Mars pipeline transports oil from the Olympus and Mars A platforms, in addition to from the Medusa and Ursa pipelines. It can also be related to the Amberjack pipeline.

BP Midstream Partners LP—Shell’s companion within the pipeline, introduced in September that it was contemplating increasing the Mars crude oil pipeline to accommodate further oil from offshore fields. Its present mainline capability, in line with BP’s web site, has a mainline capability of 400,000 barrels per day.

At the time, BP stated it might look to broaden that to incorporate new volumes from Vito and Power Nap Gulf of Mexico fields.

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Shell owns 71.5% of the Mars pipeline, whereas BP owns the remaining 28.5%.

Source: oilprice.com

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