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17 January 2025

Daily Newsletter

17 January 2025

Colonial Pipeline in US shuts down gasoline line temporarily after leakage

The line is expected to remain closed through Friday (17 January).

Tiash saha January 16 2025

The main gasoline line of the Colonial Pipeline, a critical pipeline in the US fuel infrastructure, is expected to remain closed through Friday as the company investigates a suspected leak in Georgia, reported Reuters.

Line 1 was shut down on Monday night (13 January) after reports of a gasoline release. The pipeline, spanning more than 5,500 miles, is a key component in moving gasoline from Texas to North Carolina.

Initially, service was projected to resume on Tuesday night, but the timeline has since been extended.

The closure of Line 1 mirrors the disruption caused by a 2021 cyberattack that led to widespread fuel shortages.

The cyberattack resulted in a six-day shutdown of the entire Colonial network and led to panic buying. The incident left gas stations without fuel and caused a spike in fuel prices across East Coast cities.

In response to the 2021 cyberattack, the US Department of Homeland Security issued a cybersecurity directive in July 2021 for critical pipeline operators.

Colonial has assured shippers that they will be notified of any changes to the restart schedule and is working to provide limited gasoline deliveries via other segments of its network.

Despite the prolonged outage, fuel prices have remained stable. Analysts attribute this to low gasoline demand due to cold weather and sufficient inventory levels.

As of 10 January, the US East Coast had a gasoline inventory equating to more than 20 days of supply.

Line 1 is a vital part of the US gasoline supply chain, delivering 1.5 million barrels of gasoline daily and meeting around half of East Coast demand.

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