Tuesday, April 23, 2019

Zydeco Pipeline Ran at Record Volume in Q2

Posted by August 2, 2018

File Image: CREDIT Cortec

Shell Midstream Partners' Zydeco Pipeline had record volume in the second quarter after it returned to normal from a 49-day shutdown, helping to lift earnings by about 60 percent compared with the first quarter, the company said on Thursday.

Zydeco, which delivers crude to St. James, Louisiana, from terminals in Houston and Port Neches and Nederland, Texas, recorded mainline throughput volume of 661,000 barrels per day (bpd) in the second quarter, compared with 471,000 bpd in the first quarter, the company said.

Strong spot movement demand out of Texas increased volumes on the pipeline, it said.

The company's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $155.2 million in the second quarter. Its first-quarter 2018 results were affected by a 49-day shut-in of the Zydeco system, the company said previously. The system returned to normal operations in March.

The 350-mile (563-km) Zydeco pipeline has a mainline capacity of 375,000 bpd.

Reporting by Stephanie Kelly

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