Trafigura, Exxon Mobil Protest Colonial Pipeline Changes

(Bloomberg) — Commodities trading giant Trafigura joined oil majors Exxon Mobil Corp. and Chevron Corp. in protesting operational changes to Colonial Pipeline Co.’s 5,500-mile fuel network.

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Colonial, which operates the largest US gasoline pipeline, wants to boost capacity on the maxed-out line by, in part, halting the shipment of a particular fuel grade. But shippers on the line, including refiners Valero Corp. and BP, are asking US regulators to reject Colonial’s plan, saying it will raise their own costs and create operational hurdles.

“Colonial’s proposed tariff changes will severely disrupt the efficiency of the gasoline supply chain – creating major issues for shippers, operational uncertainties for refiners, and ultimately higher gasoline prices for consumers,” Exxon said in its filing with the US Federal Energy Regulatory Commission.

A Colonial spokesperson said in a statement that the proposed changes will benefit shippers and the public interest. Colonial plans to respond to the protests Monday.

Other refiners, including Motiva Enterprises LLC, Shell PLC , Marathon Petroleum Corp. and Phillips 66, also filed motions to intervene with the regulator.

(Adds detail from Exxon filing in third paragraph)

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