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The largest U.S. fuel pipeline remains closed

The largest U.S. fuel pipeline remains closed

May 11, 2021: -Colonial Pipeline is working to restore service and has some smaller lateral lines between terminals and delivery points operating again, the company announced on Sunday afternoon.

The country’s largest fuel pipeline operator temporarily suspended all operations because of the ransomware attack on Friday.

Colonial said a restart plan is being developed but did not provide a timetable when the entire service is restored.

“We are in the process of restoring service to other laterals and will bring our full back online only when we believe it is safe to do so and in full compliance with the approval of all federal regulations,” Colonial said.

The federal government works to avoid supply disruptions after the company suspended operations on Sunday.

Joe Biden briefing on the ransomware attack and the F.B.I. said it works closely with Colonial Pipeline and government partners to address the situation.

On Friday, Colonial said it learned that it “was the victim of a cybersecurity attack” and has since 5,500 miles of pipeline that carry half of the fuel supplies on the East Coast, coming fears of spot shortages of gasoline, diesel, and jet fuel.

The pipeline is the most significant refined products pipeline in the nation, according to Colonial.

According to its website, the company refineries are connected on the Gulf Coast to above 50 million people in the southern and eastern U.S.

The impact of the attack on fuel prices is unclear since there is no timeline for Colonial to resume operations, according to Bernadette Johnson, senior vice president of power and renewables at Enverus.

But If the shutdown persists, the country can make fuel shortages develop instantly, according to John Kilduff, a partner at Again Capital in New York.

Kilduff predicted that gas prices would skyrocket on the open of futures trading Sunday evening if the company’s operations don’t resume by then.

Johnson agreed, “If this outage were to persist for a significant amount of time, there would be product shortfalls in the Northeast and a glut of product in the USGC, which would impact prices across the country,” she said.