Platts proposes new USAC Laurel Pipeline ULSD assessment from Apr. 1

Platts, part of S&P Global Commodity Insights, is proposing to launch a new assessment from Apr. 1, 2024, for ultra low sulfur diesel loading onto Laurel Pipeline on the US Atlantic Coast, amid strong market interest.

Laurel Pipeline, owned and operated by Buckeye Partners, transports refined products from Altoona in eastern Pennsylvania westward to the Pittsburgh area. The new Laurel Pipeline assessments would reflect specifications published by Buckeye Partners for grade 190 ULSD.

The proposed assessment would reflect a minimum volume of 25,000 barrels and a maximum volume of 75,000 barrels loading on an FOB basis into Laurel Pipeline at Boothwyn, Pennsylvania.

Similar to the existing Buckeye Pipeline assessment, the Laurel Pipeline assessment would reflect ULSD in US cents per gallon for loading three to seven days forward from the date of publication Monday to Wednesday, and five to nine days forward on Thursday and Friday.

The assessed date range would move further forward when pipeline scheduling is affected by holidays, and Platts would announce these changes prior to implementation.

Laurel ULSD would be assessed both as a differential to the prompt NYMEX ULSD futures contract until the final business day of the month, when its basis month would roll forward, and as an outright price.

Market feedback gathered so far suggest that Laurel ULSD prices closely track those of Colonial Pipelines Line 3 at Linden, New Jersey, and ULSD barrels being loaded into barges and Buckeye Pipeline at New York Harbor.

Platts welcome any additional comments, feedback or questions by Feb. 28, 2024, to americas_products@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.