April 2, 2012 [News Ok] - A pipeline project Oklahoma oil producers had hoped would reduce the glut of crude in storage at Cushing is being doubled.
The Seaway pipeline will carry 850,000 barrels of oil a day away from Cushing by 2014, owners Enbridge Inc. and Enterprise Products Partners LP announced this week.
But that project will be offset by plans to expand the capacity of Enbridge’s Flanagan South Project. Mike McDonald, co-owner of Oklahoma City’s Triad Energy Inc., said expanding the Flanagan South Project will add a net capacity of 75,000 barrels a day out of Cushing.
“It’s not going to help us a bunch,” said McDonald, former chairman of the Oklahoma Independent Petroleum Association. State producers have been clamoring for more pipeline capacity to reduce the glut of oil in storage at Cushing.
Enbridge and Enterprise announced plans last fall to reverse the Seaway pipeline so that it no longer carries oil to Cushing. Instead, the line will ship crude from Cushing to the Gulf Coast by June 1.
