Oil giant Shell announced on Monday that it will temporarily shut down sections of its Zydeco pipeline system for maintenance from September 24, with the work expected to last three to four days.
The Zydeco pipeline system, which extends over 350 miles and has a mainline capacity of approximately 375,000 barrels per day, consists of four segments and transports crude oil from Houston, Texas to St. James, Louisiana.
This temporary shutdown will reduce the flow of light crude oil into Louisiana, where it contributes to the Light Louisiana Sweet blend. Recently, the premium of Light Louisiana Sweet to U.S. West Texas Intermediate crude has been narrow, trading at about $1.38 per barrel above U.S. crude as of Friday.
Shell plc, headquartered in London, is one of the world’s largest oil and gas companies, formed in 1907 from the merger of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company. The company operates globally in exploration, production, refining, transportation, distribution, and marketing of oil and gas. Shell is also involved in renewable energy, chemicals, and power generation, with a focus on sustainable energy and low-carbon technologies.
