- A Seaway Crude pipeline that spilled oil at the storage hub in Cushing, Okla., remains closed, but the crude oil market is taking the outage in stride as shipping capacity on the route from Cushing to the U.S. Gulf coast has roughly tripled over the last three years.
- Seaway Crude operator Enterprise Products Partners (NYSE:EPD) took the 850K bbl/day system out of service after one of the lines suffered a leak late Sunday night and restarted the 450K bbl/day Twin Line, which opened in 2014 and runs parallel to the legacy line and was not impacted by the spill, yesterday.
- "The market is not spooked by the Enterprise closure, so there must be adequate capacity on Seaway 2 to handle existing flows," says Sandy Fielden, director of commodities and energy research for Morningstar.
- Oil traders say there also is ample capacity to move oil to Port Arthur, Tex., or Houston on TransCanada's (NYSE:TRP) 700K bbl/day Marketlink line, which opened in 2013.
- Seaway Crude Pipeline is a joint venture of EPD and Enbridge (NYSE:ENB).