Platts to launch rationales for Colonial Pipeline line space assessments

Platts, part of S&P Global Energy, will begin publishing daily rationales for the new Colonial Pipeline line space assessments for lines 1 and 2, beginning Aug. 3.

The Intercontinental Exchange, or ICE, recently introduced a monthly cash-settled futures contract based on Platts' daily assessments for Line 1 gasoline and Line 2 distillate. The full details of the futures are available on its website below.

Colonial Pipeline Gasoline Line 1 Space (Platts) Future

Colonial Pipeline Distillate Line 2 Space (Platts) Future

The rationales will appear in US Marketscan, Oilgram Price Report, and on Platts Core. They will also appear on fixed pages PGA/PRF 345 and 435.

Colonial Pipeline ships around 2.5 million barrels/day of refined products from Pasadena, Texas, to Linden, New Jersey. Gasoline-only Line 1 and distillates-only Line 2 funnel into multiproduct Line 3 at Greensboro, North Carolina, before delivering product to the East Coast. Line space is a secondary market for the right to ship on Colonial's system.

Platts assesses the value of line space for distillates and gasoline on three major Colonial Pipeline segments between Pasadena, Texas, and Linden, New Jersey. They reflect the premium or discount paid during the exchange of product at two locations along Colonial's Line 1 and/or Line 3, as well as Line 2 and/or Line 3. The assessments are linked to the prompt cycle numbers on the Colonial Pipeline schedule. The assessments reflect the transfer of at least 25,000 barrels of distillates or gasoline and are not limited to any specific product. The buyer of the line space determines which product is shipped.

Please send all feedback and comments 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.