Two key pipelines of the United States’ biggest fuel systems are set to go operational on Monday

Hurricane Harvey has raised a bill of up to $180 billion.

Following Hurricane Harvey’s devastation in Texas, two key fuel pipelines are set to start working again on Monday in Texas, alleviating concerns of rising retail prices for gas and the domestic distribution of gasoline and distillates.

Colonial Pipeline Co, the biggest U.S. fuel system, has said on Sunday, that it planned on re-opening its main distillate line between Houston and Hebert, Texas, on Monday; on Tuesday, it will open the gasoline line between those two key points.

Initially it had hoped to open both lines on Sunday itself.

These two pipelines are key since they help transport more than 3 million barrels a day of gasoline, diesel and jet fuel to refineries along the U.S. Gulf Coast to markets in the Northeast.

Late on Sunday, Explorer Pipeline had stated that its Texas-to-Oklahoma 28-inch fuel pipeline is expected to start on Sunday itself, while its 24-inch fuel pipeline is set to resume operations on Monday.

The return to normal for these supplies will go a long way to ease concerns on the non-utilization of the refining capacity and the non-availability of oil along the U.S. gulf which has cause a surge in gasoline prices by more than 20 cents since August 23.

U.S. gasoline futures RBc1 fell by 3% in early trade on Sunday. Futures prices had traded at a two-year high on fears of supply shortages. Gasoline margins RBc1-CLc1 were down 9%.

Colonial has also petitioned the Federal Energy Regulatory Commission to allow it to move transitionary gasoline, a grade between summer and winter blend, which could potentially ease the supply crunch.

Hurricane Harvey has shutdown nearly 5.5% of the Gulf’s oil production and 8.4% of its natural gas output, said the federal Bureau of Safety and Environmental Enforcement. On Monday, operators are expected to begin inspecting the facilities.

Several ports in Texas are still to open to large vessels, thus limiting the discharge of imported crude and products.

 

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