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Home Technology & Startups

US regulator suspends Colonial Pipeline’s proposed changes to fuel shipping terms

April 2, 2025
in Technology & Startups
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By Nicole Jao and Shariq Khan

NEW YORK (Reuters) – The Federal Energy Regulatory Commission issued an order to suspend Colonial Pipeline’s proposed changes to fuel shipping terms for seven months.

Colonial Pipeline sought FERC’s approval last month to stop shipping different grades of gasoline at the same time and to reduce the total number of grades it moves on the pipeline.

The regulator has accepted and suspended the revised tariff record for seven months to reflect proposed modifications, a filing shows. The regulator will hold a paper hearing to explore the issues raised by Colonial Pipeline and fuel shippers.

Oil majors including Exxon Mobil, Chevron Corp and BP Plc filed protest notices with the regulator, citing potential harm to shippers and consumers in order to boost Colonial profits.

Colonial rejected the arguments, saying they were driven by the protesting shippers’ focus on their own economics. It said the proposed changes will allow it to ship up to 10,000 barrels a day more gasoline on its main gasoline pipeline, which almost always runs full, benefiting both shippers and consumers.

Colonial Pipeline did not immediately respond to Reuters’ request for comment.

(Reporting by Nicole Jao in New York)

Tags: Colonial PipelineFederal Energy Regulatory Commissiongrades of gasolineshipping terms
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