August 31, 2017 / 11:13 AM / a year ago

Colonial sees Houston, Hebert, Texas area supply disruptions through weekend

NEW YORK (Reuters) - Colonial Pipeline Co [COLPI.UL], the largest U.S. fuel system, said on Wednesday it expects outages at its Houston and Hebert area fuel supply points in Texas likely will continue through the weekend as a result of Tropical Storm Harvey.

The outages were compounded by a lack of supply as more than 4 million barrels per day of refining capacity have been knocked offline by the storm, which moved in to Louisiana early on Wednesday after hammering Texas for days.

Facilities at Houston and Hebert are being assessed after they were hit by the storm, Colonial said in a notice to shippers.

Colonial, which moves more than 3 million barrels of fuel per day from the Gulf Coast to the East Coast, said the lack of supply out of Houston and Hebert is slowing the entire system and many lines will be shutdown. The company does not have a projected restart time.

The storm has roiled fuel distribution systems stretching from the Gulf Coast to the Midwest and the populous East Coast. Separately, the Explorer Pipeline said on Wednesday it had shut its main fuel line as supplies dwindle. The system hauls about 660,000 barrels a day of gasoline, diesel, fuel oil or jet fuel from the Gulf Coast region to the Chicago area.

Colonial’s system from Lake Charles north was not affected by the storm and volumes are continuing to ship.

The company asked suppliers and shippers to communicate when product is available to ship and when facilities will be capable of supplying product.

Reporting by Devika Krishna Kumar in New York; Editing by Chizu Nomiyama and Bill Trott

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