The Evangeline Pipeline, which moves ethylene from Texas into Louisiana, was again operational Friday, however, it was unclear if the line had returned to full rates, multiple market sources said Friday.
Chevron Pipe Line, the line’s owner, could not be reached immediately for confirmation.
The line has been down since late August 2013 and has been cited as the main reason for a record buildup of ethylene stocks in Texas, and higher prices and supply constraints in Louisiana.
In late March and early April, sources said the startup was expected in early May, which was a four-month delay from prior estimates of late December and mid-January.
Multiple sources said Friday that ethylene is again running through the system, after fill-up operations were heard on-going last weekend.
It was unclear where current run rates stood, or how long it would be before they had returned to normal, sources said.
Spot ethylene prices hit a 15-month low October 8 — assessed by Platts at 43.25 cents/lb FD USG — pressured by the oversupplied glut of product in the Mont Belvieu, Texas, trading hub.
Spot markets have seen a spike in pricing since early April, ahead of expected startup of the pipeline, climbing from 51.50 cents/lb FD USG on April 1 to a May 1 price of 57.625 cents/lb FD USG, according to Platts data.
One trade source in April estimated the daily transfer rate of the line at 1 million-3 million lb/d.
– Platts.com
