Evangeline Ethylene Pipeline reduces pressure

08-Jan-15

The Evangeline Ethylene Pipeline has lowered its pressure to remove an inspection tool from the line, pipeline owner Boardwalk Pipeline Partners has been reported by Platts. "Two of the four receipt points are still flowing," Boardwalk spokesman Joe Hollier said. The company does not yet have a timeline for a return to full operation, he added. The pipeline suffered the issue over the weekend. The pipeline was down from October through December after the discovery of a small leak. The US Pipeline and Hazardous Materials Safety Administration approved resuming operations on the pipeline in December but at 80% capacity. Boardwalk Pipeline Partners purchased the Evangeline Ethylene Pipeline from Chevron Pipe Line Company in early October for US$295 mln. The 176 mile pipeline transports ethylene from Texas into Louisiana and has a capacity of more than 1 mln m tpa.The October through December outage of the pipeline was cited by sources as a reason for a buildup of ethylene stocks in Texas and higher prices and supply constraints in Louisiana. In spot markets, US ethylene was last heard bid Wednesday at 38.375 cents/lb Mont Belvieu Williams pipeline basis for January and offered at 39.25 cents/lb MtB Wms for January. Platts last assessed US spot ethylene Tuesday at 39.75-40.25 cents/lb FD USG for January and 40.25-40.75 cents/lb FD USG for February.