Colonial Pipeline has begun a series of system upgrades that by June 2012 will add 55,000 barrels of daily distillate capacity.
The distillate capacity expansion will be accomplished with pump and motor upgrades as well as other system modifications. It is in addition to a 20,000 BPD distillate line expansion achieved earlier this year. Together, the two improvements add about 8% to Colonial’s distillate capacity.
The improvements are being installed between Baton Rouge and Atlanta, but representatives said they will benefit the entire system and are in direct response to customer demands that Colonial deliver more fuel.
“These improvements are in direct response to requests from refiners on one end and marketers on the other to increase our delivery capabilities,” said Colonial CEO and President Tim Felt. “Our commitment to our customers and to the public is to do it the way we operate everyday: safely, reliably and efficiently.”
Since late 2010, high customer demand for space on Colonial Pipeline has resulted in allocations, or customers receiving a pro-rated portion of their original order. .
Earlier in 2011, Colonial announced expansion plans for the northern end of its Houston-to-New York system which, when complete this summer, will have added 100,000 BPD of capacity.