The Laurel Pipeline Issue

By: Dalton Ordway / May 30, 2019

The Laurel Pipeline, which has operated since 1957, runs east-to-west across the state of Pennsylvania, delivering gasoline, diesel and heating fuels from the Philadelphia refineries to central and western Pennsylvania. Laurel Pipe Line Co., a subsidiary of Buckeye Partners LP based in Houston, TX, owns and operates the pipeline.  Over the past few years, Laurel Pipe Line Co has been petitioning to change the direction of the pipeline to run west-to-east.  Local gasoline retailers such as GetGo and Sheetz have been fighting against Laurel Pipe Line Co. on the reversal since this first began last June.  The local retailers fear that the pipeline reversal will reduce competition, eliminate jobs in the area and drive up pump prices. The retailers have won the initial fight as the Public Utility Commission (PUC) decided to block Laurel Pipe Line Co. from a full reversal.

Since then, Laurel Pipe Line Co. has proposed a “bi-directional” pipeline where they would switch the direction of the line at will. The coalition is still against this new proposal and released a statement that reads, “Buckeye has not shown that its bi-directional proposal is workable in practice and it has not committed to ensuring that Western Pennsylvania businesses and consumers will continue to have access to reliable, often cheaper fuel from the East Coast.” The coalition believes that the bi-directional approach would be just as harmful to the Western Pennsylvania market as the original reversal would have been.

As we get closer to the final decision, there will be more information available to the public. Discussions are intensifying and it seems this struggle could be nearing a verdict. 

https://triblive.com/news/pennsylvania/more-legal-wrangling-ahead-over-flow-of-gasoline-in-laurel-pipeline/

http://www.altoonamirror.com/news/local-news/2019/04/sheetz-others-protest-gas-pipeline/

https://www.denybuckeye.com/wp-content/uploads/2017/09/pipeline_map_drop_shadow.png


Categories: pipeline infrastructure, pipeline, Laurel Pipeline


Dalton Ordway

Written by

Dalton Ordway

My goal at Guttman is to use my analytic ability to support the Card Access Fueling team and handle all customer reporting needs.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us