Colonial Pipeline reverts to rationing on pipeline
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Colonial Pipeline Co., the largest US refined products system, said yesterday that it would go back to rationing space on its main gasoline line, as demand to haul fuel recovered amid stronger prices in the country's populous northeast.
Colonial Pipeline is back to business as usual, with more demand to move fuels to the East Coast from Houston than it has space for. Gasoline prices in the East Coast are still firm after rallying to the strongest levels this year in July as inventories draw down from a record and a spate of refinery issues.
Colonial's main gasoline line, with a capacity of about 1.2 million bpd, connects the refinery hub of the Gulf Coast to the East Coast and news of increased flows to the region sent US gasoline futures tumbling to a near two week low. Cash gasoline prices in the New York harbour region also eased, traders and brokers said.
The company said it would allocate space on the pipeline segment north of Collins, Mississippi for the next five day shipping cycle, as it typically does when nominations exceed capacity.
"This is being called based upon current nominations allowing us to maintain a five day shipping frequency," a spokeswoman for Colonial Pipeline said.
Demand to ship fuel on the line fell below capacity for the first time in six years in June as traders and refiners boosted exports instead of shipping to the populous US northeast where stockpiles were bloated.
Read the article online at: https://www.worldpipelines.com/business-news/09082017/colonial-pipeline-reverts-to-rationing-on-pipeline/
You might also like
World Pipelines Podcast: Going global with IPLOCA
In this episode, Elizabeth Corner speaks to Georges Hage, Executive Secretary at IPLOCA, about IPLOCA's insights on the culture and characteristics of the pipeline contractor community, and how it works to support sustainable energy infrastructure.
Eni and the UK Government reach financial close for the Liverpool Bay CCS project
The project foresees the efficient repurposing of part of the offshore platforms as well as 149 km of onshore and offshore pipelines, and the construction of 35 km of new pipelines to connect industrial emitters to the Liverpool Bay CCS network.