Colonial Pipeline shuts down Line 1 and 2

Lipow President Says Colonial Pipeline Receiving Product

Despite all this, Tiffany Wright, a spokesperson for AAA Carolinas, says gas prices are expected to continue rising, and she urges drivers to be considerate at the pump. The company anticipates resuming some service late Sunday. Fuel deliveries will be intermittent and depend on its ability to receive supplies from refineries and terminals.

The pipeline company announced Thursday that it closed portions of the pipeline west of Lake Charles, La., as a result of the storm. "It's quite another thing to not have pipelines".

The system hauls about 660,000 barrels a day of gasoline, diesel, fuel oil or jet fuel from the Gulf Coast region to the Chicago area. They join more than 12 other plants with nearly a quarter of USA refining capacity.

Colonial Pipeline has shut down key fuel lines running from Houston through Mississippi, Georgia Alabama and up the East Coast after Hurricane Harvey forced the closure of refineries and other facilities. Line 1, which transports gasoline, was operating at reduced rates but was shut down today, Colonial said in a statement.

The storm has roiled fuel distribution systems stretching from the Gulf Coast to the Midwest and the populous East Coast.

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The company asked suppliers and shippers to communicate when product is available to ship and when facilities will be capable of supplying product. It said it would close its line carrying gasoline on Thursday.

"AAA expects this to a noticeable yet short-term spike in gas prices", the organization said in a news release.

Colonial noted that there are other ways of delivering fuel to limit the disruption to supply, including trucks, barges and other pipelines.

After gaining 6% during the day Wednesday, gasoline futures jumped a further 7% in the evening to more than $2 a gallon. Prices for the contract, which expires Thursday, had surged 30 percent for the week as of 12:34 p.m. on the New York Mercantile Exchange. The ongoing gasoline supply issues could reduce East Coast inventories to 3- to 5-year lows, he said by phone from Houston.

At least 20 tankers were booked to load European fuels for the US since Harvey made landfall, a rate almost double the average for August, shipping data compiled by Bloomberg show. The Colonial Pipeline is a major main artery in the nation's fuel infrastructure. The problem motorists in these states are encountering is getting their normal supplies of gasoline from Gulf Coast refineries to gas stations throughout the state. And while only half the Dallas-Forth Worth area stores will have gasoline, all will remain open, he said.


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