- Colonial Pipeline says it will cut shipping volumes while it works to restart the section of its main gasoline conduit that was shut for more than 12 days after a leak was discovered on Sept. 9.
- The section of the 1.3M bbl/day line that connects the refining hub of the Gulf coast to the east coast was damaged after its biggest gasoline leak in nearly two decades; a bypass line was constructed to restart operations while the company repaired the main conduit.
- Allocations on Colonial's Line 1 - the main gasoline line on the biggest refined products system in the U.S. - will be reduced by ~20% for 10 days; U.S. gasoline crack spreads jumped by more than 5% to $13.32/bbl on news of the reduced allocations, Reuters reports.
- The U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration said on Friday that Colonial must cut pressure on the line by 20% until it can ensure the line can safely operate at full capacity.
- Colonial Pipeline is owned by Koch Industries, South Korea’s National Pension Service, Royal Dutch Shell (RDS.A, RDS.B) and others.
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