October ethylene saw five trades on Tuesday morning, with a trading source attributing the level of activity to a leak on the Evangeline Ethylene Pipeline.
Two market sources said they expected the pipeline to be down seven-10 days after the discovery of the leak on Friday, but a trading source said the repairs may take longer than that company-issued estimate.
The five morning trades for October product were all heard at 65 cents/lb Mont Belvieu Williams pipeline basis, and two trades for October product occurred late Monday at 64.50 cents/lb MtB Wms and at 66 cents/lb MtB Wms.
A spokesman for Boardwalk Pipeline Partners, which recently acquired the Evangeline pipeline, called the leak a very small pinhole and said the pipeline should be back in service next week. Boardwalk does not have a specific date targeted for the return of the pipeline, spokesman Jim Hollier said.
Boardwalk Pipeline Partners completed the acquisition of the Evangeline pipeline on Friday in a deal with Chevron Pipe Line Company. The 176-mile pipeline has a transportation capacity of 1 million mt/yr and moves ethylene between Port Neches, Texas, to Baton Rouge, Louisiana, toward the Choctaw Hub.
In markets, US spot ethylene was assessed Monday at 66.75-67.25 cents/lb FD USG for October and 63.25-63.75 cents/lb FD USG for November.