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Colonial aims to restart ex-Houston distillates line Monday, gasoline line Tuesday

Washington (Platts)--3 Sep 2017 1246 pm EDT/1646 GMT


Colonial Pipeline, the largest US refined product pipeline, now aims to restore its diesel and jet fuel shipments from Houston on Monday and gasoline shipments on Tuesday, the company said Sunday.

The pipeline was previously targeting a Sunday restart of the section of its system between Houston and Hebert, Texas, which it shut because of flooding from Hurricane Harvey.

The system continues to operate from Louisiana to the Northeast.

"Colonial continues to ship as much gasoline and other refined products as available from Louisiana-based refineries and other refineries on the Colonial system east of Lake Charles, and will continue to do so as markets return to normal," the company said in a statement.

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Half of the 26 refineries that connect to the Colonial system are located between Houston and Lake Charles, which suffered catastrophic flooding during Harvey.

The Colonial system runs from Houston to Linden, New Jersey, and supplies about 60% of the incoming supply of gasoline into the Atlantic Coast. Colonial has the ability to ship 1.37 million b/d of gasoline on its Line 1 and 1.16 million b/d of middle distillates on Line 2.

Colonial said Wednesday a lack of supply east of Lake Charles was forcing it to suspend service. On Thursday, it said deliveries would be "intermittent and dependent on terminal and refinery supply."

The reopening of the Calcasieu Ship Channel early Thursday meant that Lake Charles' three refineries were no longer cut off from crude tanker deliveries and could resume production. The area has 789,000 b/d of refining capacity: Citgo's 425,000 b/d plant, Phillips 66's 260,000 b/d Westlake plant and Calcasieu Refining's 104,000 b/d plant.

--Meghan Gordon, meghan.gordon@spglobal.com

--Edited by Kevin Saville, kevin.saville@spglobal.com

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