Philadelphia Refiners Off From Western Pennsylvania
The operator of a pipeline that wants the price of a barrel of oil to shut out Philadelphia refiners from the Pittsburgh market says that cross-state fuel deliveries have plunged by more than two-thirds since 2014, justifying its proposal to halt the pipeline_s westbound circulation in central Pennsylvania.
Buckeye Companions LP released data on Tuesday depicting a dramatic decline in visitors on its Laurel pipeline ahead of two scheduled hearings on its proposal to partly reverse the pipeline_s circulate, effectively cutting Philadelphia refiners off from Western Pennsylvania.
Buckeye stated gasoline deliveries on its pipeline from Philadelphia to Pittsburgh declined from greater than 90,000 barrels per day in 2014 to below 30,000 barrels per day in 2017, underscoring a elementary shift in gasoline markets as Midwestern refiners increase the price of a barrel of oil into the Pittsburgh market. Buckeye wants to repurpose part of the 350-mile Laurel pipeline to provide Midwestern refiners more entry to Western Pennsylvania.
A Pennsylvania Public Utility Commission administrative regulation choose held the first of two hearings Tuesday in Harrisburg to hear public testimony on Buckeye_s proposal, which would halt westbound fuel deliveries at Altoona. The company needs to reverse the circulate on the remaining portion of the pipeline to hold fuel from Pittsburgh to Altoona.
Buckeye_s filing has drawn flak from two Philadelphia-space refiners, Philadelphia Energy Options and Monroe Vitality, which say they are going to be harmed by the discount in market access. Several Pittsburgh gasoline retailers, including the Sheetz comfort-store chain and Giant Eagle grocery, have additionally protested, saying the lack of a significant provide source from the East will scale back competition and potentially improve prices.
But Midwestern refiners, led by Marathon Petroleum Co. of Findlay, Ohio, say they’re eager to maneuver extra gas into Western Pennsylvania, which they say is more competitively priced than East Coast merchandise. They argue that the pipeline reversal would not harm Philadelphia refiners, would make the area less dependent upon international-refined products, and would increase provide decisions in central Pennsylvania.
About two dozen people testified Tuesday before Administrative Regulation Decide Eranda Vero on Buckeye_s proposal. Several mentioned they feared the refineries in Philadelphia would ultimately be the losers.
_When now we have Pennsylvania refineries, why would we wish to ship product in from the Midwest _ said Anthony Gallagher, the enterprise supervisor of Steamfitters Union Local 420 in Aston. He said pipeline reversal could imperil the jobs of his members who work on the refineries.
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