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Released May 12, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Colonial Pipeline has begun to restart its operations, but it will take several days for the fuel supply chain to return to normal, the pipeline operator said Wednesday afternoon. A ransomware cyber-attack led to last week's shutdown of the nation's largest fuel pipeline, which is a major fuel provider along the East Coast.

"Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions during the startup period," the company said in a press statement. "Colonial will move as much gasoline, diesel and jet fuel as is safely possible and will continue to do so until markets return to normal." The pipeline shutdown has led to severe fuel shortages, with long traffic lines at gas stations in parts of the South and the East Coast despite pleas from the Biden Administration to avoid hoarding and panic buying.

The 5,500-mile Colonial Pipeline originates in Texas and traverses every state along the Gulf Coast (except Florida) and the East Coast, up through New Jersey. It carries more than 2.5 million barrels per day (BBL/d) of refined products. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Search Database can click here for a detailed list of all major assets within the Colonial Pipeline System.

On Tuesday, the pipeline's operator said it had delivered about 967,000 barrels to various delivery points along its system, and has taken delivery of an additional 2 million barrels from refineries in preparation for the pipeline's restart. Colonial Pipeline said that fuel was delivered to markets in Georgia, South Carolina, North Carolina, Maryland and New Jersey. In Charlotte, North Carolina, 71% of its gas stations were out of fuel as of Tuesday, according to local television station WBTV, which quoted GasBuddy analyst Patrick DeHaan.

Governors from North Carolina, Georgia, Florida and Virginia have declared a state of emergency in response to the fuel shortage.

The company said it also was manually operating additional laterals to deliver existing inventories to markets along the pipeline. The company's 32-inch diameter Line 4 fuel line, which runs from Greensboro, North Carolina, to Woodbine, Maryland, is capable of moving 700,000 BBL/d.

Colonial said it has increased aerial patrols of its pipeline right of way as a security measure.

The federal government issued a temporary hours-of-service exemption for motor carriers and drivers transporting refined products across the pipeline's footprint, and several governors have lifted weight restrictions on tanker trucks to help alleviate local supply shortages.

Also, the U.S. Environmental Protection Agency waived volatility requirements governing gasoline in Maryland, Virginia, Pennsylvania and Washington, D.C., through May 18, in a move to help bring more fuel to those areas, according to Bloomberg.

The Federal Bureau of Investigation (FBI) says it believes a Russian criminal group called "DarkSide" is responsible for the attack.

Industrial Info is tracking 13 active projects related to the system; subscribers to Industrial Info's Oil & Gas Pipeline Project Database can click here for a detailed list.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.

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