Refiners including Marathon Petroleum (NYSE:MPC) and PBF Energy (NYSE:PBF) are expected to benefit from increased capability to send product to the U.S. east coast, after Buckeye Partners' (NYSE:BPL) Laurel Pipeline reached a settlement earlier this week that allows bidirectional service on its pipeline to start in October.
The settlement allows Midwest suppliers to access the eastern Pennsylvania market, with certain limits; MPC and PBF have facilities in Ohio.
"Midwest refiners are going to be able to transport that fuel into the Pennsylvania area cheaper than the northwest European refiners," says Wood Mackenzie analyst Todd Burford.
The agreement comes after Philadelphia Energy Solutions confirmed in late June that it will shut its 335K bbl/day refinery, the largest in the region and a key supplier of fuel in the northeast.
After PES said it would shut its refinery, east coast refined product imports from Europe rose to 14.2M barrels in July, the most since at least late 2015.
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