Enbridge Proposes Expansion of Existing Pipeline to Alleviate Capacity Constraints in Corpus Christi Crude Oil Export Hub

In response to the increasing demand for crude oil export from the top hub of Corpus Christi, which is currently experiencing constraints in pipeline capacity, Enbridge Inc. Has announced plans to offer more space on its existing pipeline. The Canadian company is requesting shippers to commit to expanding the 900,000-barrel-a-day Gray Oak pipeline by up to 120,000 barrels a day. This would alleviate the backlog at Corpus Christi, where feeder pipelines such as EPIC and Plains All American’s Cactus are operating at full capacity, forcing exporters to seek alternatives like ports around Houston, Beaumont, Port Arthur, and Nederland. Corpus Christi boasts the most cost-effective loading facilities for VLCCs, which can save as much as $1.62 per barrel when shipping oil to Europe compared to using smaller tanks. The proposed expansion of Gray Oak will not involve constructing new infrastructure; instead, Enbridge intends to utilize drag-reducing agents, which minimize friction and accelerate oil flow through the pipes. Gray Oak is already being operated by Enbridge, and both Phillips 66 and Marathon Petroleum are partners in the project. According to US Energy Department statistics, US crude exports reached a record high of 4.7 million barrels a day in February.