Offers for Colonial Pipeline Line 1 space shipper history resurfaced in the market Monday after an absence of several months.
"Shipper history" is a term used to describe the capacity Colonial Pipeline allocates to a particular gasoline shipper when a shipping cycle is oversubscribed.
Colonial Pipeline Line 1 space shipper history was offered Monday at $500/b, a US Gulf Coast gasoline trading source said Monday. That is roughly unchanged from when values were last seen over the summer.
Before trade went quiet in July, the last indications seen on shipper history bids and offers were at the $500/b level.
The offers have begun appearing in recent days as the market braces for an announcement on new rules to govern shipper history.
Colonial Pipeline unveiled proposals in August to make large-scale changes to rules governing transfers of line space shipper history -- rules that would effectively end rapid transfers of small stakes of line space shipper history.
No fresh shipper history trades have been seen yet, as the market wants to see the final position Colonial Pipeline takes when it announces its decision October 27, according to one major shipper history broker.
"We are seeing some offers out there, but they're waiting to see what the pipeline will do," the broker said Monday.
At the moment, no hard bids are present in the market, although bidding interest is talked in the mid-$300s/b range, he added.
Regular customers on Colonial Pipeline actively traded shipper history last spring, as both the 1.37 million b/d gasoline-only Line 1 and 1.16 million b/d distillates Line 2 have been oversubscribed for more than three years.
