Head of petroleum analysis at GasBuddy Patrick DeHaan says the U.S. hasn’t seen ‘much impact yet on price’ from the Colonial Pipeline shut down, but expects to see issues with supply in the days ahead.
Colonial Pipeline Co. says segments of its pipeline system are being brought back online in a “stepwise fashion,” following a cyberattack on Friday conducted by Russian ransomware group Darkside.
“Restoring our network to normal operations is a process that requires the diligent remediation of our systems, and this takes time,” the company said in an update on Monday. “In response to the cybersecurity attack on our system, we proactively took certain systems offline to contain the threat, which temporarily halted all pipeline operations, and affected some of our IT systems. To restore service, we must work to ensure that each of these systems can be brought back online safely.”
AAA ON PIPELINE ATTACK: GAS PRICE HIKES, FUEL SHORTAGES POSSIBLE FOR THESE STATES
Colonial’s restart plan, in compliance with relevant federal regulations and in close consultation with the Department of Energy, will bring service back online through a phased approach.
“This plan is based on a number of factors with safety and compliance driving our operational decisions, and the goal of substantially restoring operational service by the end of the week,” Colonial noted.
The company added that it continues to evaluate product inventory in storage tanks at its facilities and others along its system and is working with shippers to move the product to terminals for local delivery.
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The Department of Transportation recently issued a temporary hours of service exemption to offer motor carriers and drivers transporting gasoline, diesel, jet fuel and other refined petroleum products more flexibility and help alleviate local supply disruptions.
“Our primary focus continues to be the safe and efficient restoration of service to our pipeline system, while minimizing disruption to our customers and all those who rely on Colonial Pipeline,” Colonial’s statement concluded. “We appreciate the patience of the traveling public and the support we have received from the Federal Government and our peers throughout the industry.”
Colonial Pipeline operates a 5,500-mile system taking fuel from the refineries of the Gulf Coast to the New York metro area. The pipeline transports more than 100 million gallons a day, or roughly 45% of fuel consumed on the East Coast, according to the company’s website. It delivers gasoline, diesel, jet fuel and heating oil and serves U.S. military facilities.
