Is Energy Transfer Partners Likely To Close APL Pipeline?
Zacks Investment Research | May 15, 2017 10:30PM ET
According to a recent report on Reuters, pipeline operator Energy Transfer Partners (NYSE:ETP) is likely to temporarily shut down a key pipeline that transports refined products into central Pennsylvania. This may prompt refiners in the area to reduce production in the upcoming months.
About the Pipeline
The 12 inch pipeline, known as APL pipeline, runs from two terminals in eastern Philadelphia to Reading. It was primarily owned by Sunoco Logistics, which later merged with Energy Transfer Partners. The pipeline is primarily utilized by refiner Philadelphia Energy Solutions Inc. and Monroe Energy, a subsidiary of Delta Air Lines, Inc. (NYSE:DAL) .
Reason for the Shut Down
APL pipeline will be shut in mid-June and will remain closed for the next six to 10 months. The partnership will utilize the time to deal with the pipeline's integrity issues and increase its carrying capacity. Energy Transfer Partners will keep supplying refined products in the area through an alternative route.
Expected Aftereffects
The partnership is yet to comment on the volume of the substitute shipment and effect on pricing, if any. It might also lead to a reduction in refinery output, especially gasoline, due to increasing inventory and lack of spare capacity.
About The Partnership
Energy Transfers Partners is one of the largest Master Limited Partnerships in the United States. It has one of the most diversified portfolios of energy assets. The asset list includes 71,000 miles of crude oil, natural gas, natural gas liquids and refined products pipelines across 36 states. It also provides fractionation, storage, and terminalling facilities. The partnership is headquartered in Dallas, TX.
Price Performance
Energy Transfer Partners belongs to the Zacks categorized Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.