Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Colonial Shuts Key Fuel Line to New York Harbor After Spill

Published 2023-01-05, 12:38 p/m
Updated 2023-01-05, 12:38 p/m
© Reuters

© Reuters

(Bloomberg) -- Colonial Pipeline Co. halted operations on a critical conduit that supplies fuel to the US Northeast, the latest disruption to energy flows following an outage on the Keystone oil pipeline last month.

Some product was released at Colonial’s Witt delivery station near Danville, Virginia, prompting the shutdown of its Line 3 Tuesday, spokeswoman Meredith (NYSE:MDP) Stone said in an email. The company is planning a restart at around 12 p.m. Eastern time on Saturday, Stone said.

Colonial’s Line 3 transports refined products such as gasoline, diesel and jet fuel to the New York Harbor market from Greensboro, North Carolina, and is part of a broader system that supplies fuels to the eastern US from refineries on the Gulf Coast. 

The incident follows the outage to TC Energy (NYSE:TRP) Corp.’s Keystone pipeline after the biggest onshore oil spill since 2010. The conduit, which can deliver as much as 600,000 barrels a day of Canadian crude into the US Midwest, only fully returned to service last week

The Colonial shutdown has so far had limited impact on the New York Harbor market — gasoline even softened slightly against Nymex futures on Thursday morning. Gulf Coast gasoline fell by a couple cents against futures following the outage. New York Harbor’s gasoline supplies have been building over the past few weeks during a seasonal demand lull. 

New York Harbor is a major import hub receiving fuel from Canada, Europe, India and South America, making it better insulated from Colonial pipeline disruptions than the Southeast. A prolonged outage of Line 3 could strain supplies on the East Coast, though, while flooding the Gulf Coast with fuel.

Colonial didn’t provide the cause or volume of the leak, although it said the impact appears to have been contained within its property. 

(Updates with market reaction starting in fifth paragraph.)

©2023 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.