Colonial Pipeline’s Line 1 gasoline pipeline remained shut Tuesday after a fire was reported Monday evening. Colonial is projecting a weekend restart for the gasoline line, having already resumed operations on its distillate Line 2 Monday night.
WHAT’S SHUT? * Line 1, which moves 1.37 million b/d gasoline from Pasadena, Texas, to Greensboro, North Carolina, and then carries product to Linden, New Jersey.
WHY IS IT IMPORTANT? * Colonial is considered the main artery connecting Gulf Coast refiners with customers along the US Eastern Seaboard. The Atlantic Coast is net short refined products, with local refinery capacity unable to meet demand, and is home to the New York delivery and pricing point for NYMEX RBOB and ULSD futures. The USAC relies heavily on USGC barrels via Colonial, as well as waterborne imports from Europe.
MARKET IMPACT * NYMEX December RBOB settled 6.46 cents higher at $1.4841/gal Tuesday, although that […]