Pipeline company wants two-way fuel shipments
A Houston-based company said Friday that it is taking steps to move refined fuels in two directions in a portion of its pipeline west of Altoona while it asks state regulators to allow it to reverse the flow from west to east.
Buckeye Partners said it wants to make service bi-directional along the Altoona-to-Pittsburgh section of the 350-mile Laurel pipeline. Buckeye has sought permission to reverse the flow on that section to bring fuels from Midwest refiners to customers farther east in Pennsylvania.
Buckeye announced Friday that it is adjusting its proposal in light of an administrative law judge’s March 29 recommendation that the Public Utility Commission reject its application. The original plan was to end east-to-west shipments of petroleum products at its facility in the Eldorado neighborhood of Altoona.
The pipeline west of Altoona would then be used to bring lower-cost midwestern fuel east to Altoona.
In addition, it would decrease reliance on petroleum shipped to the East Coast from other countries, Buckeye officials had said.
The plan received criticism from businesses, including GetGo and Sheetz.
GetGo and Sheetz representatives said that reversing the flow will be bad for competitive gas prices. The companies say they already have access to Midwest gas and the change would simply stop access to gasoline from the East Coast west of Altoona.
Buckeye President Robert A. Malecky announced Friday, “We are actively undertaking the steps necessary to provide bi-directional service along the Altoona to Pittsburgh section of the refined fuels pipeline system operated by its operating subsidiary, Laurel Pipe Line Company LP. This service, which Buckeye believes will not materially impact its original project costs or timeline, will leave all of Laurel’s existing Pennsylvania Public Utility Commission tariffs in place while establishing new Federal Regulatory Energy Commission tariffs from Midwest origins to Altoona.”
Malecky’s statement said the new plan gives more choice to customers involved, including Sheetz.
“We see the addition of eastbound service to the current westbound capability as providing an operational solution for all our customers. This approach provides shippers and suppliers with the choice to supply from either the west or east, while still increasing Pennsylvania consumers’ access to more affordable, lower cost North American-manufactured fuels, and we think it does so in a way that fully addresses the points raised in the recent PUC proceedings.”
Deny Buckeye, a coalition of Pennsylvania companies that provide fuel to consumers across the commonwealth, is suspicious of Buckeye’s new plan. The coalition, including Giant Eagle Get Go, Gulf, Guttman Energy, Monroe Energy, Philadelphia Energy Solutions and Sheetz issued a statement Friday on Buckeye’s newest plan for the Laurel Pipeline.
“We don’t have details, but we’re certainly suspicious of this decision. After over a year of telling the PUC, legislators, media and the public that a reversal is best for Pennsylvania, Buckeye is now trying to take unilateral action that appears to be circumventing the Pennsylvania Public Utility Commission process. Truly embracing bi-directional flow that meets the needs of Buckeye’s current customers — and being open to competition — are contrary to their position for the past 12 to 18 months. We look forward to hearing more about their plans before taking an official position.”
Buckeye has 20 days from administrative law judge Eranda Vero’s March 29 recommendation to the PUC to apply for exceptions. That would be followed by a 10-day period for replies from opponents before the five-member PUC would make a final ruling.
The PUC can accept, reject or modify the judge’s recommendation.
It’s American gasoline, diesel and jet fuel that would flow to Altoona through the Laurel Pipeline if Buckeye Partners LP gets approval to reverse its refined product flow, and that’s a good thing because it could mean lower gas prices, Blair Township Supervisor Palmer Brown said last year.
Under the original plan, reversing the pipeline’s flow would require construction of a 150,000-gallon surge relief tank at the current Buckeye site, Buckeye Operations Manager Shawn Roberts said last year.
That would allow 5,000 barrels per hour to flow through the pipeline from Michigan to Altoona, Roberts had said.
There are more than 1,000 documents on file with the case, including Buckeye’s initial application, all protest and support comments and the judge’s decision that runs 200 pages.
“It’s a complicated matter and one of many the PUC is undertaking,” Nils Hagen-Frederiksen, PUC press secretary, said.
And unlike some other cases that appear before the PUC that require action in a specific time period, the Laurel Pipeline reversal does not have a time frame. “They (PUC commissioners) will take it up when they think it is appropriate,” Hagen-Frederiksen said.
Mirror Staff Writer Russ O’Reilly and The Associated Press combined for this report.