Why the drop in Oil and gas pipeline stocks today?
Seaway capacity restricted-no mention of why or how long
Enterprise Products Partners LLP (EPD) cut the amount of oil its Seaway pipeline was delivering to Jones Creek, Texas, by more than half because the delivery point has reached full capacity, the company said in a note to shippers Wednesday.
The Seaway pipeline would reduce deliveries to 175,000 barrels a day to the delivery point 7 miles west of Freeport, Texas. The 400,000 barrel-a-day pipeline brings crude oil from the Cushing, Okla., storage hub to the Houston refining belt.
Enterprise said the Jones Creek delivery point was experiencing "unforeseen constraints in outbound takeaway." Enterprise, which owns the pipeline with Enbridge Inc. (ENB), told shippers they must deliver barrels at another delivery point or reduce the amount of oil they ship.