Gasoline Traders Get Paid to Take a Spin on Colonial’s Pipeline
- New York prices lower than Houston, easing demand for shipping
- Long-term customers pay subleasers to hold space for future
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With the U.S. Northeast drowning in a gasoline glut, companies have resorted to paying others to use their space on the Colonial Pipeline.
Colonial requires customers to move product to maintain their shipping rights on the nation’s largest refined products line, which carries gasoline from Gulf Coast refineries to the New York area. New York fuel prices have dropped below Houston’s thanks to the glut, so shippers using the line can either pay to send gasoline where it will sell for less or pay a subleaser to do it for them.