Gasoline demand from Mexican deregulation may pressure Colonial Pipeline

22 Aug 2017   Mexico, Population

A recent output disruption at Mexico’s largest refinery may have contributed to Colonial Pipeline’s June decision to cancel some shipping on its gasoline-only Line 1, USGC gasoline market sources have said. While this was an isolated event, growing Mexican import demand driven by deregulation could continue to put pressure on Colonial’s Texas-to-North Carolina Line, sources said. Colonial in June decided not allocate the 37th cycle on its Line 1, the first such decision since the line’s 42nd cycle in 2011. The disruption over June and July at Mexico’s 330,000 b/d Salina Cruz may have also compounded the overall economic challenges of the USGC-USAC arbitrage over the summer, the sources said, as Latin America became a bigger draw for USGC product. Article continues below… Stay on top of policies, pipelines and prices in a way that only Platts can cover them. Each report covers natural gas and LNG, crude oil […]

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