U.S. government approves Colonial Pipeline restart after leak
Source: Reuters
COMMODITIES | Tue Sep 20, 2016 | 9:53pm EDT
U.S. government approves Colonial Pipeline restart after leak
By Devika Krishna Kumar and Jarrett Renshaw | NEW YORK
The U.S. government approved a Wednesday restart for Colonial Pipeline Co's main gasoline pipeline, authorities said on Tuesday, after the line's biggest leak in nearly two decades caused supply shortages that pushed pump prices higher.
The largest gasoline conduit in the United States was partially shut down after a leak was discovered on Sept. 9 in Alabama, and motorists have since suffered long waits to fill up at forecourts across the southeast.
U.S. gasoline futures tumbled 5 percent on news of the restart. Gasoline futures had surged 9 percent and spreads had rallied last week after the leak.
The U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a written approval for restart of the line late Tuesday. Earlier in the day, Reuters reported that the approval was forthcoming, citing an official familiar with the matter.
The line carries 1.3 million barrels per day of gasoline from the refining hub on the Gulf Coast to the East Coast.
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Read more: http://www.reuters.com/article/us-pipeline-operations-colonial-co-idUSKCN11Q2T4
