Shell Plans to Shut-in Different Portions of Zydeco Pipeline

(Reuters) – Oil major Shell on Monday said it plans to shut-in different portions of its Zydeco pipeline system for maintenance for three to four days starting Sept 24.

The Zydeco pipeline system, which spans over 350 miles and has a mainline capacity of about 375,000 barrels per day, has four segment and ships crude oil from Houston, Texas to St. James, Louisiana.

The pipeline shut-in will reduce the amount of light crude supplied into Louisiana, where it becomes a part of the Light Louisiana Sweet blend.

Light Louisiana Sweet’s premium to U.S. West Texas Intermediate crude has largely remained narrow in recent days. It traded at an about $1.38 premium per barrel to U.S. crude on Friday.

Reporting by Arathy Somasekhar in Houston; editing by Gary McWilliams

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