Colonial pipeline shuts down, East Coast gas shortages loom

Colonial pipeline says it hopes to get its Houston area pipelines up and running by Sunday. Company graphic.

Lower Texas refinery output impacts Colonial pipeline

As Texas and Louisiana refineries remain closed or are operating at reduced capacity in the aftermath of Hurricane Harvey, the Colonial pipeline has been shut down due to lack of product to ship.

The pipeline, a major fuel artery to the Port of New York and New Jersey from Houston, has a daily capacity of over 100 million gallons of fuels.  It has two lines, one for gasoline and the second carries diesel and jet fuel.

The massive storm that made landfall three times has shut down over 30 per cent of the US refining capacity, or 5 million b/d.

On Wednesday, the diesel and jet fuel line closed and the gasoline line, operating at reduced capacity, will be shut down on Thursday.

Gas prices are skyrocketing, thanks to Harvey, and are expected to rise even more, especially on the East Coast.  According to CNBC, gas prices could rise to US$2.50/gallon, up from US$2.40/gallon on Wednesday.

On the company’s website detailing its response to Harvey, it reported that both Line 1 and 2 are operational from Lake Charles, Louisiana, eastward.  According to the company, deliveries from the Louisiana area will be intermittent and dependent on terminal and refinery supply.

Both lines from Houston to Hebert are closed.

The company says it expects to return to service from Houston on Sunday after it evaluates its infrastructure and executes its start up plan.

The 660,000 b/d Explorer Pipeline shut its main fuel line from Houston to Tulsa, Oklahoma as refinery supplies dwindled.