colonial-pipeline
HOUSTON, TX (77WABC) – A cyberattack has forced the shutdown of a massive pipeline that supplies approximately 50% of all fuel to the East Coast. The pipeline runs between Houston, Texas, and Linden, New Jersey.
The company transports 2.5 million barrels per day of gasoline, diesel, jet fuel and other refined products through 5,500 miles (8,850 km) of pipelines.
Colonial Pipeline Company announced Saturday that halting its pipeline operations — which connects refineries with customers throughout the East Coast and South — will affect some of its IT customers. The company describes its pipeline as “the largest refined products pipeline in the United States.”
“Upon learning of the issue, a leading, third-party cybersecurity firm was engaged, and they have already launched an investigation into the nature and scope of this incident, which is ongoing. We have contacted law enforcement and other federal agencies,” the statement read.
According to the company website, Colonial is the largest refined products pipeline in the U.S. and transports approximately 45% of all fuel consumed by the East Coast. This fuel includes gasoline, diesel fuel, home heating oil, jet fuel and fuels for the U.S. military.
The company has engaged a third-party cybersecurity firm to launch an investigation, and Colonial has contacted law enforcement and other federal agencies, it said. Officials do not know yet whether the attack on the pipeline was carried out by foreign government hackers or a criminal group.
Colonial did not give further details or say for how long its pipelines would be shut.
During the trading session on Friday, Gulf Coast cash prices for gasoline and diesel edged lower.
Both gasoline and diesel futures on the New York Mercantile Exchange rose more than crude prices during the day. Gasoline futures gained 0.6% to settle at $2.1269 a gallon, while diesel futures rose 1.1% to settle at $2.0106 a gallon.
Longer-term price effects will depend on the amount of time that the lines are shut. If barrels are not able to make it onto the lines, Gulf Coast prices could weaken further, while prices in New York Harbor could rise, one market participant said.
Colonial significantly shut down its gasoline and distillate lines during Hurricane Harvey, which hit the Gulf Coast in 2017.
During that time, spot Gulf Coast gasoline prices rose to a five-year high, while diesel prices rose to around a four-year high.
