Louis Dreyfus Highbridge Energy LLC and Explorer Pipeline Company early last week announced plans to make connections from LDH Energy’s Mont Belvieu, Texas, storage facility to Explorer’s 28-inch pipeline system. The connection, which is expected to be operational in the fourth quarter, will be designed to accommodate refined products and natural gasoline shipments and be capable of meeting Explorer’s mainline delivery rates of 32,000 barrels per hour.

“With the increase in demand projected for diluents moving into Canada, Explorer is the most logical choice for meeting the transportation needs from the Gulf Coast into the Midwest markets,” said Rod Sands, CEO of Explorer. “The connection to the Mont Belvieu trading hub for natural gasoline as well as the connectivity of our system in the upper Midwest will position Explorer for future growth in the transportation of diluents.”

The connection adds to the logistics capability of LDH Energy’s Mont Belvieu facility, which presently has refined products connectivity to other major pipelines, as well as comprehensive connectivity to the NGL supply and distribution infrastructure in and around Mont Belvieu.

Mike Dowling, president of LDH Energy Asset Holdings, LLC, added, “The addition of connectivity to Explorer positions LDH as a key element in the diluent supply chain to Canada as well as advances the fungible trading hub for refined products at our Mont Belvieu facility.”

Explorer’s pipeline transports petroleum products including gasoline, diesel fuel, and jet fuel from the Gulf Coast refineries into the Houston, Dallas/Fort Worth, Tulsa, St. Louis, and Chicago markets. The southern system currently has a capacity of 660,000 bpd and the northern system currently has a capacity of 450,000 bpd.

Louis Dreyfus Highbridge Energy LLC is a leading merchant energy company. Its subsidiary, LDH Energy Asset Holdings LLC, owns and operates a diversified portfolio of energy infrastructure assets, including natural gas liquids and refined products storage, pipelines, gas gathering and processing facilities, and coal blending and transport facilities. LDH Energy is jointly owned by the Louis Dreyfus Group and affiliates of Highbridge Capital Management, LLC.