Colonial Delays Restart of Fuel Pipe to New York to Sunday

Colonial Pipeline Co. delayed the restart of a vital conduit that supplies fuel to the US Northeast by a day to Sunday after a leak earlier this week.

(Bloomberg) — Colonial Pipeline Co. delayed the restart of a vital conduit that supplies fuel to the US Northeast by a day to Sunday after a leak earlier this week.

The company had originally planned to restart Line 3 Saturday at noon Eastern time. In an emailed statement, the company said the pipe remains shut while repairs continued at its Witt booster station near Danville, Virginia.

Equipment failure caused a roughly 60-barrel leak of diesel fuel at the facility, prompting its shutdown on Jan. 3. The outage had a limited impact on gasoline prices in the critical New York Harbor market because stockpiles already were ample amid soft seasonal demand.

Line 3 transports refined products such as gasoline, diesel and jet fuel to the New York Harbor region from Greensboro, North Carolina, and is part of a broader network that delivers supplies from Gulf Coast refineries to the eastern US.

The incident followed the shutdown of TC Energy Corp.’s Keystone pipeline after the biggest onshore oil spill since 2010. The pipe that can deliver as much as 600,000 barrels of Canadian crude daily to the US Midwest only fully returned to service last week.

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