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Laurel pipeline flow reversal to go ahead

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World Pipelines,

Buckeye Partners, L.P. announced last week that it is actively undertaking the steps necessary to provide bi-directional service along the Altoona to Pittsburgh section of the refined fuels pipe line system operated by its operating subsidiary, Laurel Pipe Line Company, L.P. (Laurel). This service, which Buckeye believes will not materially impact its original project costs or timeline, will leave all of Laurel’s existing Pennsylvania Public Utility Commission (PUC) tariffs in place while establishing new Federal Regulatory Energy Commission (FERC) tariffs from Midwest origins to Altoona, PA destinations.

Buckeye’s decision comes in light of the recent recommended decision by the PUC’s Administrative Law Judge that the PUC reject Laurel’s application to abandon east-to-west transportation and reverse the direction of service in that section of the Laurel pipe line from west to east.

“Buckeye fully respects and remains committed to the ongoing PUC process. We see the addition of eastbound service to the current westbound capability as providing an operational solution for all our customers. This approach provides shippers and suppliers with the choice to supply from either the west or east, while still increasing Pennsylvania consumers’ access to more affordable, lower cost North American manufactured fuels, and we think it does so in a way that fully addresses the points raised in the recent PUC proceedings,” said Robert A. Malecky, Buckeye’s President, Domestic Pipelines and Terminals.

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