$800 Million Agreement in Acquiring Stakes by Shell

An agreement to acquire Shell’s 25.97% equity interest in Explorer Pipeline Company and 10.125% equity interest in Colonial Pipeline Company for US$800 million was made by Shell Midstream Partners, L.P. This agreement will increase Shell Midstream Partners’ interest in Explorer and Colonial to 38.59% and 16.125% respectively.

“This acquisition is evidence of our strategy in action – we will continue to build scale with diversified assets that provide robust, ratable cash flows,” said Kevin Nichols, CEO of Shell Midstream Partners. “The Explorer and Colonial systems have the capacity to deliver some three million bpd of refined products, providing energy to key demand centers of the United States.”

Explorer Pipeline’s 1830-mile pipeline transports gasoline, diesel, fuel oil and jet fuel with a capacity of 660,000 bpd and is recognized as one of the nation's leading petroleum products transporters serving more than 70 major cities in 16 states.

Colonial Pipeline’s 5,500-mile system moves gasoline, diesel and jet fuel from the Houston area to destinations in the South along the East Coast and New York Harbor and is the largest refined products pipeline in the United States.

The acquisition is expected to close in the second quarter of 2019.


Colonial Pipeline Sued for 2016 Explosion that Killed Two

Colonial Pipeline of Alpharetta, GA has been sued by the family of a man killed in a 2016 pipeline explosion and another man injured in the blast. The complaint was filed in Fulton County State Court on July 9th.

Two men died in the October 2016 explosion in Alabama with five more being injured.

The complaint claims that a project inspector for Colonial did not show up on the day of the explosion. The plaintiffs said that the inspector told a subordinate to go ahead with the excavation despite not having documentation concerning the pipeline provided to him.

A Colonial spokesman provided a statement to the Daily Report saying that the company “continues to extend its sympathy to the family of Mr. Whatley for their loss. Colonial has received the lawsuit and looks forward to addressing the issues raised. At this time, the company will have no further comment on the lawsuit.”

Colonial Pipeline’s 5,500-mile system carries more than 100 million gallons of refined fuel daily between Houston and New York City.

Lawyers for the co-defendant Superior Land Designs told reporters that they had been served and were reviewing the complaint.

The blast occurred on October 31st in Shelby County, Alabama.

Atlanta Business Chronicle

Colonial Pipeline to Pay $3.3 Million in Fines, Damages to Alabama for 2016 Pipeline Spills

Colonial Pipeline Co will pay the state of Alabama $3.3 million in damages and penalties related to an explosion and spill on its 5,500-mile gasoline line in 2016.

The state's attorney general said the settlement is to first address environmental damage to land and water that was caused by the combined 11,800-barrel spill that happened in rural Shelby County in late 2016.

In September of 2016, nearly 7,400 barrels leaked below ground and was discovered by a mining inspector. The leak was caused by pipe fatigue due to improper soil compaction.

In October, a pipeline explosion killed one worker and injured several others after the pipeline exploded during maintenance on the line when it was accidentally struck by excavating equipment. About 4,400 barrels spilled as a result of the explosion.

The Colonial Pipeline transports more than 3 million barrels per day of gasoline, diesel, and jet fuel from the Gulf Coast to New York.


Colonial Pipeline, Enterprise Products Partners Teaming Up for Fuel Exports from Beaumont Terminal

Colonial Pipeline and Enterprise Products Partners are teaming up to boost exports from the Beaumont refined oil products terminal in Texas to rival the Houston Ship Channel.

Colonial Pipeline is offering marine logistic services and access to as much as 2 million barrels of new storage at Enterprise's facility in Beaumont. Colonial's shippers will be able to move fuel from 13 Gulf Coast refineries to the Beaumont terminal.

The Colonial Pipeline transports more than 3 million barrels per day of gasoline, diesel, and other fuel from the Gulf Coast to the northeast, making it the largest refined products system in the U.S.

International demand for refined products has been on the rise, causing U.S. exports to surge.


Explorer Pipeline Starts Two Fuel Pipelines This Week; Colonial Pipeline Restarts Lines After Storm

Explorer Pipeline's 28-inch fuel pipeline and 24-inch fuel pipeline that run from Texas to Oklahoma and Oklahoma to the Midwest respectively, began operations as scheduled early this week, easing concerns over a fuel supply crunch.

The 28-inch fuel pipeline began Sunday, and the 24-inch fuel pipeline began Monday, according to a statement.

The startups are easing concerns over a fuel supply crunch after Tropical Storm Harvey shutdown nearly a quarter of the U.S. refinery capacity and sent gasoline futures prices to a two-year high.

Explorer Pipeline is owned by Phillips 66, Marathon, Sunoco Logistics, and Shell.

Colonial Pipeline also announced Monday that it restarted one of its major fuel lines that was shut during the Harvey storms and will restart another line on Tuesday.

Colonial is the biggest U.S. fuel system, connecting Texas refineries with markets in the Northeast and transporting more than 3 million barrels a day of gasoline.


Colonial Pipeline to Shutdown Key Fuel Pipeline Due to Harvey Floods

Colonial Pipeline announced it will shut down a key gasoline line that supplies the South due to Tropical Storm Harvey-related refinery shutdowns in Houston and the storm’s effect on Colonial’s facilities in Lake Charles, Louisiana.

The line, which provides nearly 40 percent of the South’s gasoline, will be shut down Thursday, according to the company.

Colonial Pipeline already shut down its other mainline that transports diesel and aviation fuels.

Colonial’s shutdown will surely raise gasoline prices as it did when the line was shut down in September, 2016 due to a leak and gas spill. But prices have been on the rise ever since storm Harvey dumped more than four feet of rain on southeastern Texas over the last week.

Harvey caused shutdown of over 20 percent of the Gulf Coast’s oil refining capacity due to floods.

At least eight refineries in the area were also shut down, according to AAA.

Colonial Pipeline said its system would resume operations once the company can ensure that its facilities are safe and able to move product.

The Colonial Pipeline runs from Houston to New York and makes up more than 5,500 miles of pipeline.


Colonial Pipeline Company Fills Largest U.S. Gasoline Pipeline As Demand in Northeast Recovers

Colonial Pipeline is back to rationing space on its gasoline pipeline, the largest gasoline pipeline in the U.S., as demand moves more fuel to the East Coast and prices grow stronger.

Colonial Pipeline's Line 1 ran below capacity for about 45 days starting in July but has now restarted its practice of rationing space and froze shippers' ability to nominate more fuels this month in order to maintain the line's five-day cycle shipping frequency.

Demand to ship fuel on the line had fallen below capacity for the first time in six years last June as traders and refiners increased exports instead of shipping to the northeast where stockpiles were bloated.

The summer season has driven up demand, resulting in inventories to fall more in line with the five-year average in recent weeks.

The gasoline pipeline carries approximately 1.3 billion barrels a day from a refining hub near Houston to northern, high-demand locations like New York City.


Colonial Pipeline Reopens Pipeline after Gasoline Leak

Colonial Pipeline Company has reopened one of its gasoline pipelines after it was shutdown due to a gasoline leak in Chattanooga, Tennessee.

Repairs to Line 19, which carries petroleum products through Chattanooga to Nashville, were completed on Thursday, and service was restored after being closed since Sunday.

On Saturday the Chattanooga Fire Department received reports of gasoline fumes near the pipeline, after which the pipeline was shut down and searched for a potential leak.

Crew members found a sheen on Shoal Creek, which feeds into the Tennessee River, but no gasoline reached the river, according to the Environmental Protection Agency.

Colonial Pipeline Company estimated that 603 gallons leaked from its line.

Houston Chronicle

Colonial Pipeline Searches for Suspected Spill, Shut Pipeline Down as Precaution

Colonial Pipeline Company's Line 19, a gasoline line between Atlanta and Nashville, is still shut after a spill on the line was suspected on Sunday, causing the company to shut down the line as a precaution.

According to a notice sent to shippers on Sunday, the line was shut down after gasoline odors were reported to the Chattanooga Fire Department. The company also shut down their Line 20, a distillates line, as a precaution. Since Sunday, however, Line 20 has been restarted.

Colonial Pipeline crews are still searching for what Chattanooga Fire Department assistant chief Danny Hague called a "very small" leak. Workers have excavated parts of the line for inspection, and a skimmer truck is near the scene in case workers need to quickly suck oil out of water.

Georgia-based Colonial Pipeline Company delivers more than 100 million gallons of gasoline and other refined petroleum products to 13 states in the eastern U.S. as well as the District of Columbia.

Chattanooga Times Free Press

Colonial Pipeline: Line 1 Back in Service After Pipeline Explosion

Line 1 Supply Update (  Colonial Pipeline  )

Line 1 Supply Update (Colonial Pipeline)

Colonial Pipeline announced that its gasoline pipeline that caught fire and exploded last week is officially back in service as of 5:45am Sunday.

A section of Colonial Pipeline’s 5,500-mile Line 1 pipeline exploded last Monday during routine maintenance operations, killing one person and injuring several others who remain hospitalized.

According to government officials and Colonial Pipeline, a piece of excavation equipment hit the pipeline, which caused the explosion. Investigations are still ongoing.

Colonial Pipeline reported that although the line has been restarted, it may take several days for fuel delivery to return to normal after the service restoration.

Colonial Pipeline

U.S. Safety Board to Begin Investigations Relating to Fatal Colonial Pipeline Accident

The U.S. National Transportation Safety Board is conducting an open investigation relating to the gasoline fire and explosion in near Helena, Alabama, which occurred last Monday and killed one worker and injured several others.

A section of Colonial Pipeline’s 5,500-mile Line 1 pipeline caught fire and erupted Monday in Shelby County, Alabama, just a mile near a section of the line that leaked hundreds of thousands of gallons of gasoline into a mine retention well and shut down gasoline to the U.S. Southeast for over a week.

The board announced Friday that a team of five members from the board will be in Alabama for several days to conduct interviews and collect evidence of the accident. Some will also visit Colonial Pipeline offices in Georgia to interview operations and engineering staff as well as to collect documents and data.

The fire that erupted on the line Monday during routine maintenance operations was finally fully extinguished on Friday, and operations have begun to remove residual gasoline from the pipeline and to replace the faulty section.


Colonial Pipeline Expected to Restart Pipeline Segment Sunday after Explosion, Fire

Colonial Pipeline reported it will delay restarting its Line 1 to Sunday after it was shut down earlier this week due to an explosion and fire on the line in Shelby County, Alabama.

Restoration on the line is expected for Sunday afternoon now rather than Saturday, according to Colonial Pipeline. The company said it made great progress Wednesday night to remove product from the affected segment of Line 1 which will allow workers to fully extinguish the fire that has been burning since the explosion on Monday. The crews will then be able to replace the damaged part of the line.

Colonial Pipeline’s Line 1 transports 1.3 billion barrels a day of oil products such as gasoline, jet fuel, and diesel from the gulf to the U.S. Northeast, a span of more than 5,000 miles.


U.S. Gasoline Increases to Highest Seen Since 2008 Following Alabama Pipeline Blast

According to Bloomberg data, gasoline prices in New York increased the most in almost eight years to 15 percent in intraday trading, and its premium to crude prices increased 60 percent after the gasoline pipeline explosion and fire in Shelby County, Alabama on Monday, which killed one person and injured several others.

For the second time in two months, Columbia Pipeline shut down its mainline that carries oil products from the U.S. refining center in Houston to the New York Harbor. The first shutdown occurred in September after a section of its Line 1 leaked hundreds of thousands of gallons of gasoline, causing a line shutdown for 12 days and cutting supplies to 50 million Americans in the Southeast.

The possible upcoming gasoline shortages prompted gasoline traders to act fast, booking more tankers for replacement fuel supplies from Europe.

The Southeast is incredibly dependent on pipeline supplies from Colonial Pipeline’s line as there are no refineries between Alabama and Pennsylvania that produce a substantial amount of transportation fuels.

Although precautionary actions are in place after the Monday pipeline blast in Alabama, officials say it is still too early to know just how much the blast will affect the gas supply in the Southeast and along the East Coast.

ABC News

Gasoline Pipeline Explosion in Rural Alabama Kills One, Injures Several

A still shot from CNBC video footage of the fire caused by a gasoline pipeline explosion outside of Helena, Alabama in western Shelby County on October 31, 2016 (  CNBC News  )

A still shot from CNBC video footage of the fire caused by a gasoline pipeline explosion outside of Helena, Alabama in western Shelby County on October 31, 2016 (CNBC News)

The same pipeline that experienced a gasoline leak in early September and caused a gasoline shortage throughout the Southeast exploded in western Shelby County, Alabama on Monday and has been shut down.

The explosion occurred after a worker struck the pipeline with a track hoe, which caused gasoline to ignite and explode around 3:00pm Monday, sending thick, black smoke high into the air over the rural land. One worker was killed, and several workers were injured.

The effects of the explosion were not immediately clear, although two wildfires caused by the explosion have burned at least 31 acres of land and forced individuals living nearby out of their homes. According to the Shelby County Sheriff’s Office, the fire has been contained but remains burning.

“Our deepest condolences go out tonight to the family and friends of the person who was lost today, and our thoughts and prayers are with those who were injured,” pipeline owner Colonial Pipeline said in a released statement Monday.

Colonial Pipeline also said in a brief statement following the incident that health and safety of its work crews and the public are its top priorities.


Colonial Pipeline: Volume of Gasoline on Line 1 to Decrease During Repairs

Colonial Pipeline Company System Map (  Colonial Pipeline)

Colonial Pipeline Company System Map (Colonial Pipeline)

Colonial Pipeline on Monday stated that shipping volumes on its Line 1 pipeline will decrease as the company works to restart the main line after it leaked nearly 6,000 barrels of gasoline in rural Alabama last month.

During repairs, the gasoline flow on the line will decrease by 20 percent over the next 10 days, according to the company.

Colonial Pipeline expects the line to be completely restarted by mid-November of this year.

The affected section of Line 1, which normally carries 1.3 million barrels a day of gasoline from the Gulf Coast to the East Coast, was shut down for more than 12 days after the leak on September 9. A bypass was quickly built in order to restart operations on the line while the company made repairs on the main line.

Once repairs are made on the main line, Colonial Pipeline must wait to receive the green light from PHMSA to restart operations.

As a part of its Corrective Action Order, PHMSA required Colonial Pipeline to submit a restart plan and must approve review and approve the plan before allowing the line to be reinstated.

A spokeswoman for PHMSA said the agency is working with Colonial Pipeline to address the requirements and cannot yet speculate on a date for restart.

Business Insider

Colonial Pipeline: Damaged Pipeline to be Excavated, Sent to Lab for Testing

Colonial Pipeline Company has begun excavating the section of its Line 1 pipeline that failed and leaked thousands of gallons of gasoline in Shelby County, Alabama last month.

Once the pipeline is excavated, it will be sent to an independent laboratory for further testing.

PHMSA is leading the investigation into the failure of the pipeline and requires Colonial Pipeline to conduct various tests and analyses on the affected pipe. If PHMSA concludes that Colonial Pipeline violated any federal safety regulations, the administration may issue civil penalties or recommend a criminal investigation.

Colonial Pipeline is still working on cleanup operations around the site of the leak, mainly in a mining retention pond where most of the spilled gasoline collected.

Colonial built a bypass line around the leak and was able to restart regular operations of the line on September 21.


PHMSA Grants Conditional Approval to Restart Colonial Pipeline Line 1

With PHMSA’s conditional permission, Colonial Pipeline Company restarted its Line 1 on Wednesday upon completion of a bypass built as a temporary measure to restore service after the line leaked between 6,000 and 8,000 barrels of gasoline in Shelby County, Alabama on September 9.

Southern regional director for PHMSA’s Office of Public Safety James Urisko issued the approval on September 20, which allowed Colonial Pipeline to restart its line using the built bypass while the company develops a restart plan issued by PHMSA last Friday.

“Following construction and positioning of the 500-foot bypass segment of pipeline around the leak site yesterday, Colonial Pipeline performed a successful hydrostatic test to confirm its structural integrity and completed the connection/“tie-in” of the bypass segment to the main line (Line 1) this morning,” the company reported on its response website on Wednesday.

“Subsequent to restart, it is expected to take several days for the fuel delivery supply chain to return to normal.  Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions. Colonial continues to move as much gasoline, diesel and jet fuel as possible and will continue to do so as markets return to normal,” Colonial added.

Investigations on the cause of the leak are ongoing.

Colonial Pipeline

Colonial Pipeline: Expect Restart of Ruptured Gasoline Pipeline Wednesday

Colonial Pipeline Company announced Tuesday that it expects the restart of its Line 1 gasoline pipeline on Wednesday after a leak of approximately 6,000 barrels caused major gasoline shortages and higher prices at the pump in the Southeast.

Crews are constructing a bypass line that, when completed, will resume full operation of Line 1, which runs gasoline from the Gulf of Mexico to the East Coast. The bypass is about 500 to 700 feet long and will have roughly the same pressure and capacity specifications as Line 1.

Gas prices have risen significantly in the past week in the affected states, with Georgia getting hit the worst. The cost of fuel rose by 4.5 cents in Georgia overnight, adding to an increase of fuel prices by 25 cents in just a week, according to AAA.

The gasoline leak occurred September 9 on a section of Line 1 in Shelby County, Alabama. A mining inspector detected a gasoline odor while doing work nearby and reported the smell to authorities. The leak was then confirmed by Colonial Pipeline, and officials are currently investigating the cause of the spill, which remains unknown.


PHMSA Issues Corrective Action Order to Colonial Pipeline for Gasoline Pipeline Spill

The Pipeline and Hazardous Materials Safety Administration filed a Corrective Action Order to Colonial Pipeline Company on Friday pertaining to its September 9 Line 1 failure that spilled approximately 6,000 barrels of gasoline into a mining retention pond in Shelby County, Alabama.

Required corrective actions Colonial Pipeline must adhere to according to the order include complete shutdown of the pipeline, a written restart plan, mechanical and metallurgical testing, a root cause failure analysis, an emergency response plan and training review, and a corrective action order document report.

Colonial Pipeline’s Line 1 carries gasoline from Houston, Texas to Greensboro, North Carolina. The leak occurred on a section of the line that runs from Collins, Mississippi, to Atlanta, Georgia.

Officials are currently investigating the cause of the leak.


Southeast Gas Pumps Experiencing Shortages after Alabama Pipeline Leak

Gas prices are spiking across the Southeast after a pipeline break that leaked approximately 8,000 barrels of gasoline in rural Alabama last week.

The ruptured pipeline is Colonial Pipeline Company’s Line 1 pipeline, which can transport up to 1.2 million barrels of gasoline a day. The company has two main lines and is having to ship significant volumes of gasoline on their second line while they make repairs on Line 1.

Motorists in Alabama, Georgia, Tennessee, South Carolina, and North Carolina are seeing a growing number of gas stations with covered nozzles indicating they are out of use. And gas stations that are still pumping gas are increasing their prices.

Colonial Pipeline said the company was working “around the clock” to repair the break and get supplies to the affected states. The company also stated over the weekend that it is in the process of constructing a temporary pipeline that will bypass the ruptured section of Line 1 in Shelby County, Alabama.

Meanwhile, federal regulators are in the process of investigating the cause of the pipeline leak, which is currently unknown.

Wall Street Journal