Gainesville, GA – September 20, 2016 – Supply constraints in the southeast continue to affect gasoline consumers. Colonial is constructing a temporary segment to bypass the leak along Line 1. The bypass around Line 1 is roughly 500-700 feet long, much shorter than the several miles initially reported. Many fuel speculators believe welding concerns will delay a restart until next week, but Colonial has stood by their announcement that Line 1 will be running by the end of the week. If this is the case, we expect the run rate to be around 80%. Very limited gas shipments are beginning to hit the Southeast off Line 2 in Tennessee, Georgia, and Carolinas. The EPA has released a waiver to allow for conventional gasoline to be sold in markets where reformulated gas is usually mandated (Ex. Maryland and Virginia).
As the challenges for gas supply continue along the Southeast, carrier capacity is very limited as well. Due to the need to long haul fuel from coastal terminals, the overall number of available trucks for transport is limited. This limited capacity will impact all consumers, gas and ULSD alike. We are also starting to see diesel allocations tighten across the Southeast as Line 2 has been re-appropriated to deliver both gas and diesel. As before, please continue to place orders well in advance of need to allow time to procure supply and transportation.