AMERICAS OIL: Maxed-Out Colonial Gasoline Pipeline Looks to Boost Capacity: BBG
Mar-04 20:28
Maxed-Out Colonial Gasoline Pipeline Looks to Boost Capacity: Bloomberg
- Colonial Pipeline is proposing changes to increase capacity by 20,000 b/d by no longer transporting overlapping batches of gasoline and stopping transportation of grade five gasoline.
- The proposed changes would allow the pipeline to transport an additional 15,000 to 20,000 b/d of gasoline, on top of the current 2.5 mb/d transported currently.
- If approved, the changes would likely come into effect in September, following a window for shippers to file concerns with the Federal Energy Regulatory Commission.
- The company would also stop transporting grade five gasoline — a higher volatility fuel used in the northeast — and modify how it tests fuel quality at the start of the 5,500-mile pipeline in Houston.
- “Based on the demand that we are seeing, we fully expect that we would remain full on line 1,” Wolfe said, referring to the main gasoline-transporting conduit of the system.
- The pipeline is the primary means of meeting fuel demand on the East Coast, where multiple refineries have closed in recent years, making the region increasingly reliant on imports. The line is closely watched by fuel suppliers and traders because operational issues can have an outsized effect on US fuel demand, prices and inventories.
- Shippers on the pipeline have a window to file any concerns with FERC, after which the regulator will decide whether to approve Colonial’s proposed changes. If approved, the changes would likely come into effect in September.
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The House Financial Services Committee's website confirms that Fed Chair Powell will deliver his semi-annual Monetary Policy Report on Wednesday Feb 12 at 1000ET.
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US OUTLOOK/OPINION: Nonfarm Payrolls, Revisions Highlight Next Week In US Macro
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Friday’s nonfarm payrolls for January highlights the US macro week. It's a highly anticipated report that could alter recent trends considering it will include annual benchmark revisions along with seasonal factors and an updated birth-death model.
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