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More Midwestern fuel to flow into Pennsylvania thanks to a new pipeline deal

The Laurel pipeline historically was used by Philadelphia refineries to ship product to the west. Now coastal refiners are in retreat, and western Pennsylvania will get more fuel from the Great Lakes region.

We have received about a half-dozen letters in favor of the fuel filler being on the right (passenger) side of the car because one can get closer to the pumps, rear-end collisions are less likely on the right corner and filling an out-of-gas car on the highway risks personal rear-end damage. However, if one pulls too close to the pump island (and pumps, hoses and bollards), one must only give oneself more space.
We have received about a half-dozen letters in favor of the fuel filler being on the right (passenger) side of the car because one can get closer to the pumps, rear-end collisions are less likely on the right corner and filling an out-of-gas car on the highway risks personal rear-end damage. However, if one pulls too close to the pump island (and pumps, hoses and bollards), one must only give oneself more space.Read moreistockphoto
    by Andrew Maykuth
    Updated 
    Published 

Pennsylvania regulators on Thursday approved a pipeline agreement that gives Midwestern fuel producers greater access to Pennsylvania markets, a fundamental market shift that comes at the expense of East Coast suppliers.

The Pennsylvania Public Utilities Commission approved a settlement between Buckeye Partners LP, which operates the Laurel pipeline that crosses Pennsylvania, to operate the pipeline in both directions at different times. The pipeline was historically used by Philadelphia refineries to transport gasoline, diesel, and heating oil across Pennsylvania.

Buckeye sought the change, saying coastal refiners and fuel importers underutilized the pipeline, and low-cost Midwestern producers were pressing to sell more fuel into Pennsylvania.

Philadelphia refiners and several large Western Pennsylvania retailers, including Sheetz Inc. and Giant Eagle stores, had fiercely resisted the change, but they agreed to the settlement after Philadelphia Energy Solutions closed its refining complex in South Philadelphia in June and declared bankruptcy. The refinery, the largest on the East Coast, was a major shipper on the pipeline.

» READ MORE: Pipeline advances plan to open western Pa. to Midwest refiners; here’s what Philly producers stand to lose

The U.S. Bankruptcy Court in Delaware this week also approved the settlement.

Under the agreement, Buckeye can begin shipping fuel Oct. 1 from the Midwest as far east as its Eldorado terminal near Altoona. East Coast shippers will still have the ability to ship fuel on some days as far west as Pittsburgh.

In a statement Friday, Buckeye Partners thanked the PUC and said the settlement would ensure access to “more affordable fuels” to Pennsylvania consumers.

“We’re pleased to take one more step towards initiating bi-directional service and the increased supplies of American-made fuels it will provide from the Midwest,” the company said.