Harvey Impacts Domestic Fuel Network
U.S. drivers are starting to feel the effects of Tropical Storm Harvey in their wallets as the country's fuel distribution network starting at the Gulf Coast and stretching across the country is squeezed by floods, refinery closures and dwindling supplies. At least 3.6 million barrels per day (bpd) of refining capacity is offline and more refineries are at risk of shut downs as the storm relentlessly dumps rain on Texas and heads toward Louisiana. The longer refineries remain shut, the more retail prices will increase, traders and analysts said.
LNG America, Buffalo Marine to Design LNG Bunker Fuel Network
LNG America announced it has entered an agreement with Buffalo Marine Service, Inc. (Buffalo Marine) to cooperate on the design of an LNG bunker fuel network for the U. S. Gulf Coast region. LNG America is developing a hub-and-spoke delivery system for LNG as fuel for the marine market and other high horsepower applications. Ultimately, LNG America will establish delivery infrastructure for the delivery of LNG as fuel in major U.S. ports. Bunkering company Buffalo Marine presently has more than 50 vessels dedicated to bunkering in the Gulf of Mexico region.
Colonial Pipeline Demand at 2-Month Nadir
Demand to ship gasoline on Colonial Pipeline has sunk to a two-month low as Gulf Coast supplies are increasingly being exported or sent to the Midwest rather than to the New York harbor, three sources familiar with the matter said on Wednesday. Colonial Pipeline Co, the largest U.S. fuel network, has consistently allocated space for at least the past two months, meaning demand has exceeded capacity on the pipeline. But it would not ration space on its main gasoline line for the next five-day shipping cycle, known as "Cycle 2," the sources said, which suggests lower demand.