From Reuters:
The Seaway pipeline expansion start-up is continuing as planned, and crude oil is flowing through the line, a spokesman at Enbridge said on Friday.From the March 2012 Enbridge/Enterprise press release:
The expanded 400,000-barrel-per day line, more than twice the 150,000 bpd previously, started up Friday.
Infrared pipeline and refinery monitor Genscape had reported it had detected the shutdown of all monitored pumping stations along the line's route from around 10:00 a.m. EST.
"Enterprise has informed us that this is a normal part of the start-up process and that crude continues to flow through the line," a spokesman at Enbridge Energy Partners LP said in an email. Enbridge is a partner of the line, operated by Enterprise Product Partners.
"There are no issues or concerns," the spokesman said.
Enbridge Inc. (NYSE/TSX:ENB) and Enterprise Products Partners L.P. (NYSE:EPD) today announced that they have secured capacity commitments from shippers to proceed with an expansion of the Seaway Pipeline that will more than double its capacity to 850,000 (“BPD”) by mid-2014. During the supplemental binding open commitment period, Enterprise and Enbridge received additional commitments with terms ranging from five to 20 years that support construction of a 512-mile, 30-inch diameter twin (a parallel line) along the route of the Seaway Pipeline, adding 450,000 barrels per day (“BPD”) of capacity to the existing system. This capacity can be cost-effectively expanded on a timely basis with the addition of incremental pump stations....And a "possibly related in the future, it is after all a global market" story from FT Alphaville this morning:
Is Saudi Arabia starting to panic?
Some excellent market commentary from Olivier Jakob at Petromatrix on Friday morning regarding the current state of oil market (dis)equilibrium and the potentially precarious position of Saudi Arabia....MORE
Our emphasis:
Is Saudi Arabia starting to panic?
Yesterday it was widely leaked that the Saudi crude oil production level in December was at 9.0 myn b/d , a drop of -0.5 myn b/d versus November and -1.1 myn b/d below the peaks of 2012 (April and June). The official Saudi production number is supposed to be released on Jan 20th but the number shown yesterday were precise enough that we have to assume that it is the official number that was leaked.
This is the largest monthly drop in production since January 2009 which was the reaction to Brent reaching 36 $/bbl.
With this cut of production, Saudi Arabia is already acting as if Brent had broken the support of 100 $/bbl and we have to assume that they have enough market inputs to fear that break in a very near future....
