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Exxon, Trafigura Protest Colonial Pipeline Changes
Shippers Ask FERC to Reject Plan
Commodities trading giant Trafigura joined oil majors Exxon Mobil Corp. and Chevron Corp. in protesting operational changes to Colonial Pipeline Co.鈥檚 5,500-mile fuel network.
Colonial, which operates the largest U.S. gasoline pipeline, wants to boost capacity on the maxed-out line by, in part, halting the shipment of a particular fuel grade.
But shippers on the line, including refiners Valero Corp. and BP, are asking U.S. regulators to reject Colonial鈥檚 plan, saying it will raise their own costs and create operational hurdles.
鈥淐olonial鈥檚 proposed tariff changes will severely disrupt the efficiency of the gasoline supply chain 鈥 creating major issues for shippers, operational uncertainties for refiners, and ultimately higher gasoline prices for consumers,鈥 Exxon said in its filing with the U.S. Federal Energy Regulatory Commission.
READ MORE:听Brookfield Leads Race to Acquire Colonial Pipeline
A Colonial spokesperson said in a statement that the proposed changes will benefit shippers and the public interest. Colonial plans to respond to the protests March 24.
Other refiners, including Motiva Enterprises, Shell PLC , Marathon Petroleum Corp. and Phillips 66, also filed motions to intervene with the regulator.
