Enterprise TE Pipeline To Stop Interstate Distillates Shipping

Despite protests from a host of petroleum marketers including NATSO, Enterprise TEPPCO is expected to halt interstate ULSD on its pipeline in late July, according to OPIS. Once ULSD shipments end, the area served by the Enterprise TEPPCO (Enterprise TE) pipeline could experience product shortages, especially in markets in Louisiana, Arkansas and Missouri, where alternative ULSD supply sources are unavailable. These shortages could raise diesel prices and compromise consistent availability of the product for consumers reliant on the fuel for transportation, agriculture or other commercial uses.

Some shippers reportedly are evaluating options for making up for the interstate distillates delivery stoppage on Enterprise TE pipeline, OPIS reported. The alternatives include trucks, rail, pipelines and barges. All alternatives are expected to add costs to the distillates supplies. Murphy Oil appears to be the only company to be able to by-pass this shipping stoppage after securing a temporary restraining order (TRO) against Enterprise TE.  This lawsuit has been moved to the federal court, and the first hearing is set forFeb. 8.

In late April, NATSO along with the Petroleum Marketers Association of America (PMAA), the Arkansas Oil Marketers Association, Louisiana Oil Marketers and Convenience Store Association and Missouri Petroleum Marketers and Convenience Store Association joined several companies in filing a protest with the Federal Energy Regulatory Commission (FERC). The groups argued that while Enterprise TEPPCO intended to cancel ULSD and jet fuel interstate shipments on its pipeline, it had not abandoned service and would continue to provide both interstate and intrastate ULSD and jet fuel transportation to certain shippers and destinations. The groups argued that these actions are arbitrary and discriminatory and will have serious consequences for shippers and consumers. However, FERC declined to intervene in the matter.

 

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This article originally ran in NATSO News Weekly (NNW), NATSO's member only weekly electronic newsletter. NNW is packed with the latest updates on government and business issues affecting the truckstop and travel plaza industry.

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