The U.S. is on the brink of a major transformation in refined products. New pipelines into the Desert Southwest and connecting out to California, along with refinery shutdowns along the West Coast, are poised to usher U.S. refiners into a new era shaped by consolidation, efficiency and market power.
Late last month, HF Sinclair joined ONEOK, Phillips 66 and Kinder Morgan in planning pipeline projects to move more refined products to Western markets. It’s too soon to say how many of these projects will come to fruition, but what’s certain is that the effort to transport large volumes of products west from PADDs 2, 3 and 4 will significantly impact refinery economics across vast swaths of the U.S. In today’s RBN blog, we‘ll discuss the pipeline projects and how they will affect market dynamics.
A few days ago, HF Sinclair joined ONEOK, Phillips 66 and Kinder Morgan in planning pipeline projects to move more refined products to Western markets. It’s too soon to say how many of these projects will come to fruition, but what’s certain is that the effort to transport large volumes of products west from PADDs 2, 3 and 4 will significantly impact refinery economics across vast swaths of the U.S. In today’s RBN blog, we‘ll discuss the pipeline projects and how they will affect market dynamics.
