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Gulf Gasoline Gains After Citgo Refinery Shuts Alkylation Unit

Gulf Coast gasoline strengthened after Citgo Petroleum Corp. said it shut an alkylation unit at the Corpus Christi, Texas, plant after a possible flange leak.

The discount for reformulated, 87-octane gasoline, or RBOB, in the Gulf Coast narrowed 2.13 cents to 25 cents a gallon versus futures traded on the New York Mercantile Exchange at 2:17 p.m., according to data compiled by Bloomberg. Prompt delivery rose 0.59 cent to $2.9927 a gallon.

Water cannons automatically activated at 7:15 p.m. local time yesterday around the perimeter of the unit at the Citgo refinery after sensors detected a leak, according to a company statement. No one was injured and the incident was confined to the refinery, Citgo said.

Investigators from the U.S. Chemical Safety Board are en route to Corpus Christi to look into the leak, Daniel Horowitz, a director of affairs with the Washington-based board, said in a telephone interview.

Reformulated 87-octane gasoline in New York Harbor weakened 2.62 cents to a discount of 28.75 cents a gallon.

The discount for regular, 87-octane gasoline in Chicago widened 1 cent to 23 cents a gallon versus futures.

Enbridge Inc. plans to return crude oil Line 14 to service early today and Line 64 after a fire in Illinois on March 8, according to a person with knowledge of the situation.

The company halted crude deliveries on the lines on March 3 after two vehicles collided, starting a fire at the pumping station near New Lenox, Illinois, 36 miles (58 kilometers) southwest of Chicago. Two people were killed and several others injured in the crash.

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