Zydeco is seeking indications of interest in firm capacity transportation service on the proposed pipeline.
The larger pipeline is anticipated to replace an existing Zydeco Houma – St. James line to accommodate the demand in excess of the current capacity, which is approximately 270,000 bbl/d with the existing 18 inch line.
The open season closes 11 December 2015. This non-binding open season is intended to solicit expressions of interest from potential shippers. If sufficient customer interest is expressed in the non-binding open season, Zydeco may proceed to a binding open season. The size of the new line and the amount of new capacity are subject to customer input.
Upon completion of the proposed pipeline, customers would have more capacity available to transport crude directly between Houma and St. James. All firm capacity commitments on the new line would incur a small premium to the equivalent spot rate. Pending regulatory approval, construction is expected to be completed in early 2018.