Kinder Morgan Inc. is delaying the restart of its refined products pipeline after 13 inches (33 cm) of rainfall in a five-hour period in Alabama caused extensive flooding and hindered access to the site of a leak, the company said on Oct. 7.
The company said it will resume repairs to the pipeline segment at Buck Creek “when the site is safe for personnel.” The pipeline spans from Louisiana to Virginia.
The Products (SE) Pipe Line, formerly known as the Plantation pipeline, was shut Oct. 1 after a leak was discovered and was originally intended to restart on Oct. 8 or 9. The line has the capacity to carry more than 700,000 bbl/d of gasoline, jet fuel and diesel.
New York Harbor gasoline prices were up approximately 50 cents on Oct. 7, trading at $7.50 per gallon above the gasoline futures benchmark on the Nymex, according to market participants.
One trader source estimates about 600,000 bbl/d of gasoline, jet fuel and diesel is being displaced due to the outage.
Fuel supply issues are regional, hitting parts of southwestern Virginia, the Carolinas and Georgia, according to the Oil Price Information Service.
Kinder Morgan said it is keeping customers informed to allow them to make alternative arrangements such as trucked supply, or alternative pipeline supply.
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