Key fuel lines restart as concerns ease over supply crunch after Harvey


Two key fuel pipelines were set to start up on Monday after certain segments in Texas were shut because of Hurricane Harvey, helping alleviate concerns about rising retail prices and the domestic distribution of gasoline and distillates.

Colonial Pipeline Co, the biggest U.S. fuel system, said on Sunday it planned to reopen the main distillate line between Houston and Hebert, Texas, on Monday, and the gasoline line between those two points on Tuesday. The company had initially aimed to restart both its lines by Sunday.

The company’s pipelines connect refineries along the U.S. Gulf Coast to markets in the Northeast, transporting more than 3 million barrels a day of gasoline, diesel and jet fuel.

Explorer Pipeline said late on Sunday that its Texas-to-Oklahoma 28-inch fuel pipeline started up as expected. Its 24-inch fuel pipeline, which will run from Oklahoma into the U.S. Midwest, will restart on Monday.

The return of supply eased some concerns after the storm took down nearly a quarter of U.S. oil refining capacity, hit oil and gas platforms along the Gulf and lifted average gasoline prices by more than 20 cents since Aug. 23.

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Source: Reuters