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| Gas crisis looms
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Experts fear near-term hit from Katrina, long-term impact less clear.(Full story)
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| More on Katrina's fallout
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| Energy Secretary Samuel Bodman says the U.S. will release oil from the nation's Strategic Petroleum Reserve to help refiners hurt by Katrina. (August 31) |
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NEW YORK (CNN/Money) -
Two major suppliers of gasoline to the eastern seaboard of the United States have resumed partial service, and two other crucial pipelines were operating at partial capacities Thursday.
Colonial Pipeline announced that it is now operating at about 38 percent capacity after electrical power outages due to Hurricane Katrina shut down key portions of the pipeline in Louisiana on Monday.
The news came as gasoline prices surged above $3 a gallon in some parts of the country due to outages and bottlenecks in the wake of Hurricane Katrina. (For more on that story, click here).
Colonial said that with the return of additional electrical power in Mississippi, expected later today, it will be able to operate at about 61 percent of normal capacity by the end of the day. Gasoline, jet fuel and other products are being transported and delivered now, it said.
With additional restoration of electrical service, Colonial said it expects it will be able to achieve approximately 74 percent of normal operating capacity by Sunday, and 75 percent to 86 percent by next week.
"As always, our first concerns are for protection of people and our environment. With this in mind, we continue to work closely with the electric utilities as they re-establish service in Mississippi," Colonial CEO David Lemmon said in a statement.
The Alpharetta, Ga.-based company operates 5,500 miles of pipeline and normally pumps a total of more than 100 million gallons of fuel products each day from refineries and storage facilities in Texas and Louisiana to Georgia, the Carolinas and on to New York.
Plantation Pipeline company also reported that it resumed limited service on its refined products pipeline serving the eastern seaboard.
Plantation said it restored nearly 25 percent of normal operating capacity, or about 150,000 barrels of capacity per day.
Plantation operates 3,100 miles of pipelines that transport gasoline, diesel and jet fuel to major metropolitan areas in the southeast, including Birmingham, Ala., Atlanta, Charlotte, N.C. and the D.C. area.
The Dixie Pipeline is a 1,300-mile pipeline transporting propane from Texas to North Carolina and Georgia. It is operating at 40 percent capacity, according to the Association of Oil Pipe Lines (AOPL). The organization represents over 50 of the largest U.S. pipeline companies.
Capline is a crude oil pipeline from Louisiana to Illinois, and is operating at 65 percent capacity.
There have been no reports of leaks or damage at any of the pipelines, according to AOPL.
It is not possible to give a timeline for when the pipelines will restore full service, because it is unclear when sufficient electricity will be available to them. APOL said pipelines would require 13 generators the size of a semi-trailer truck to reactivate service, and those trucks are currently in high demand.
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For more on when the eastern seaboard pipeline will come back on line, click here.
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