Platts clarifies US pipeline LSD discontinuations

Due to the US Environmental Protection Agency's ban on refiners producing 500 ppm low sulfur diesel fuel for highway use after June 1, Platts is planning to discontinue its US Gulf Coast, US Atlantic Coast, and Group 3 on-road low sulfur diesel assessments.

Platts intends to discontinue the pipeline-linked low sulfur diesel assessments when pipelines stop carrying the on-road diesel grade.

According to the EPA rule, companies have until August 1 to work on-road LSD out of US terminals, and US refined product pipelines are expected to stop transporting on-road 500 ppm diesel before that deadline; however, no US refined products pipeline has yet announced when it will terminate transportation of on-road LSD.

In the US Gulf Coast, Platts plans to discontinue its pipeline on-road LS diesel assessment when the Colonial Pipeline stops carrying this grade. In addition, Platts plans to discontinue its Group 3 on-road LS diesel assessment when Magellan Pipeline stops carrying this grade. Once these pipelines announce the termination date, Platts will notify subscribers of the effective discontinuation date for these pipeline assessments.

In addition, Platts is seeking feedback on appropriate timing to discontinue its waterborne LSD assessments in the US, specifically, US Gulf Coast waterborne LS diesel, US Atlantic Coast barge LS diesel, and US Atlantic Coast cargo LS diesel.

Please send all questions and comments by May 14 to: esa_ramasamy@platts.com, with a cc to pricegroup@platts.com.