Gasoline, Diesel to Baltimore mostly Supplied by Pipeline
3/26 12:48 PM
Gasoline, Diesel to Baltimore mostly Supplied by Pipeline CRANBURY, N.J. (DTN) -- The early Tuesday collapse of the Francis Scott Key Bridge in Baltimore caused within seconds of being struck by a 948-foot cargo vessel called the Dali is a tragedy and has bottled up barge movement in Baltimore Harbor but is unlikely to affect gasoline or diesel fuel supply for the city. Fuel to the Baltimore and Washington, D.C. markets is primarily delivered by Line 4 of the Colonial Pipeline, a 504,000-bpd mixed product pipeline that terminates at Dorsey Junction in Maryland. There are four pipeline spurs from Dorsey that connect to Baltimore-Washington International Airport, Curtis Bay, and south Baltimore. Three of the line spurs carry mixed fuels with pipeline capacity totaling roughly 188,800 bpd. The fourth line is dedicated to kerosene jet fuel to the BWI airport with a capacity of about 28,800 bpd. Colonial's 855,000-bpd Line 3 mixed product pipeline continues from Dorsey to the Aberdeen Junction, and ends in Linden, New Jersey. A line spur with about 62,400 bpd of mixed product capacity from Aberdeen connects with north Baltimore. There are both inbound and outbound waterborne fuel movements from the Port of Baltimore, although these are of far smaller volume. Outbound barge movements from the Port of Baltimore are "primarily delivered to small markets along the rivers and tributaries of the Chesapeake Bay," notes ICF International. RBOB at the Houston origination point for the Colonial Pipeline was assessed at a 6.5cts discount to May RBOB futures on the New York Mercantile Exchange early Tuesday afternoon, putting spot price at about $2.6375 gallon. The RBOB rack average for Baltimore is $2.6835 gallon, less than a 5cts tariff on the Colonial Pipeline. The prompt cycle in Houston is for 7.1psi Reid vapor pressure reformulated gasoline which began shipping with cycle 17. Current trading is for cycle 19, with RBOB RVP moving to the summer 7.4psi RVP with cycle 20. The remaining transit time for cycle 17 from Houston to Dorsey is about 17 days for gasoline, which explains the tight Houston spot to Baltimore rack spread since Baltimore reformulated gasoline is for the higher 13.5psi RVP. Blending costs could rise, however, on higher ethanol prices should barge deliveries of the blendstock be delayed by the collapse of the bridge. Brian L. Milne, 1.732.768.0260, brian.milne@dtn.com, www.dtn.com. (c) Copyright 2024 DTN, LLC. All rights reserved.
 
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