CITGO to Ship Lemont Refinery Gasoline to New York via Reversed Laurel Pipeline
Event summary
- CITGO will deliver gasoline from its Lemont Refinery to New York in early October via the newly reversed Laurel Pipeline.
- This marks the first shipment under Buckeye Partners' bi-directional service on the Laurel Pipeline.
- The Lemont Refinery's strategic location near major infrastructure enables this Midwest-to-East Coast fuel movement.
- CITGO operates three refineries with a combined crude capacity of 829,000 barrels per day.
The big picture
This development highlights the growing importance of pipeline flexibility in U.S. fuel distribution, particularly as refiners seek to optimize supply chains between high-production Midwest hubs and high-demand East Coast markets. CITGO's move underscores a broader industry trend toward enhancing infrastructure agility to meet regional fuel needs more efficiently. With a combined refining capacity of 829,000 barrels per day, CITGO's ability to pivot supply routes could influence competitors' strategies in similar markets.
What we're watching
- Supply Chain Flexibility
- How CITGO's ability to leverage reversed pipelines will affect its East Coast supply chain resilience.
- Market Competition
- Whether this new route will pressure other refiners to adjust their East Coast supply strategies.
- Operational Efficiency
- The pace at which CITGO can scale this pipeline reversal model to other refineries.