Enterprise Products Partners L.P. (EPD) and Enbridge Inc. (ENB) said the Seaway Pipeline made its first delivery of crude from Oklahoma to the U.S. Gulf Coast, providing some long-awaited relief to the mid-continent's glut of crude oil.
The pipeline, which began operating May 19, is pumping 150,000 barrels a day from Cushing, Okla., to Freeport, Texas, the first south-bound route for the rapidly expanding production of crude from the U.S. interior toward the heart of the refining industry, in the Texas and Louisiana Gulf Coast.
Large quantities of oil piling up at Cushing have depressed the price of West Texas Intermediate crude, the U.S. crude benchmark, versus Brent crude; but that gap shrank some Wednesday, as WTI crude futures went up 1.02% to $85.15 and Brent traded up only 0.14% to $100.78.
The companies are working to expand the pipeline's capacity to 400,000 barrels a day by the first quarter of 2013.
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