Shell Pipeline Nears Construction Phase for New Products Pipeline on the Gulf Coast

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Shell Pipeline Company LP (Houston, Texas), a subsidiary of Shell Oil Products US, which is a business unit of Shell Oil Company, the U.S. operating arm of Royal Dutch Shell (NYSE:RD) (The Hague, Netherlands), is planning to construct a new refined petroleum products pipeline in Louisiana. The proposed 24-inch diameter Bengal Pipeline will originate near Baton Rouge, Louisiana, and extend approximately 75 miles to the southeast and terminate near Garyville, Louisiana.

The $80 - $100 million pipeline will be designed with an initial capacity of nearly 250,000 barrels per day of refined petroleum products. Further expansion of the pipeline will depend on regional market conditions. Shell has retained the services of Universal Ensco Incorporated (Houston, Texas) for engineering and design services. Shell Pipeline expects Universal Ensco to complete equipment specs, so the bid packages can be released by Shell Pipeline in May of 2005. Shell will select construction contractors by the end of May or the beginning of June.

All things considered, Shell Pipeline expects to receive its final permits and begin construction on the Bengal Pipeline in late July or early August of 2005, with a completion and in-service date targeted for the first quarter of 2006.

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