The connection, which will be designed to accommodate movements of both refined products and natural gasoline, is expected to be capable of meeting Explorer’s mainline delivery rates of 32,000 barrels per hour. The parties expect the connection to be operational fourth quarter 2010.
Rod Sands, CEO of Explorer, said: “With the increase in demand projected for diluents moving into Canada, Explorer is the most logical choice for meeting the transportation needs from the Gulf Coast into the Midwest markets. The connection to the Mont Belvieu trading hub for natural gasoline as well as the connectivity of our system in the upper Midwest will position Explorer for future growth in the transportation of diluents.”
The connection adds to the logistics capability of LDH Energy’s Mont Belvieu facility, which has refined products connectivity to other major pipelines, as well as connectivity to the NGL supply and distribution infrastructure in and around Mont Belvieu.
Mike Dowling, president of LDH Energy Asset Holdings, said: “The addition of connectivity to Explorer positions LDH as a key element in the diluent supply chain to Canada as well as advances the fungible trading hub for refined products at our Mont Belvieu facility.”
Explorer’s pipeline transports petroleum products including gasoline, diesel fuel and jet fuel from the Gulf coast refineries into the Houston, Dallas Fort Worth, Tulsa, Saint Louis and Chicago. The southern system has a capacity of 660,000 barrels per day and the northern system has capacity of 450,000 barrels per day.
