2-way flow of Laurel Pipeline approved by state commission
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A petition to start bi-directional service on the Laurel Pipeline between Pittsburgh and Altoona has received the necessary regulatory approval from the state.
The Pennsylvania Public Utility Commission voted 5-0 to approve a joint settlement agreement between the Laurel Pipeline Co. and a group of complainants, including Giant Eagle and Sheetz, that had opposed bi-directional service.
The agreement reached last week means the pipeline operator, Houston-based Buckeye Partners LP, can begin to transport fuel west to east from Midwest refineries starting in October.
The pipeline has historically been used for the movement of petroleum east to west from Philadelphia-area refineries.
The agreement approved by the PUC permits the initiation of two-way service, while preserving westbound service from Philadelphia at certain times.
It also imposes a five-year moratorium on further extensions of bi-directional service and a seven-year moratorium on flow reversal for any points east of Pittsburgh on the Laurel Pipeline.
Giant Eagle, which operates GetGo gas stations, and Sheetz had opposed flow reversal and bi-directional service because they said it would shut out East Coast refiners, hurt competition and lead to higher gas prices at the pump.
The gasoline retailers intervened when Buckeye Partners first sought flow reversal from the PUC in 2016 and, after that was denied, bi-directional service from the Federal Energy Regulatory Commission in 2018.
The retailers maintained that for much of the year, gasoline manufactured on the East Coast is cheaper than Midwest gasoline.
Parties in the dispute reached a settlement agreement in July.
In a statement, the retailers said the agreement “will preserve consumers’ and businesses’ access to low-cost East Coast fuels for years to come. … The agreement also ensures transparency in the operation of the pipeline and preserves the regulatory oversight power of the PaPUC and FERC.”
In its written statement following the settlement, Buckeye Partners said: “We appreciate the commission’s thoughtful review and timely approval of this settlement that ensures reliable access for Pennsylvania consumers to more affordable fuels on the Laurel Pipe Line.
“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.”