MOSCOW (MRC) -- Colonial Pipeline's communications system for shippers came back online late May 18 after experiencing problems for most of the day, again disrupting operations even though the petroleum products artery is up and running again after being halted for nearly a week following a cyberattack, reported S&P Global.
Refined products shippers were unable to make nomination changes on Colonial for most of the day, despite the line resuming normal operations May 13, sources said.
Colonial halted all pipeline operations May 7 because of a ransomware attack, restricting the primary artery for gasoline and refined products from delivering more than 100 million gal/d of fuels. Colonial stretches more than 5,500 miles from the Houston refining hub to New York Harbor, supplying about 45% of all the gasoline and diesel fuel consumed on the East Coast.
A combination of regional shortages and panic-buying caused 50% or more of gas stations in North Carolina, South Carolina, Georgia, Virginia, Florida, and Washington to run out of fuel, and some regional shortages were continuing May 18.
The Colonial attack comes just as US fuel demand was quickly growing since bottoming out in January from the ongoing coronavirus pandemic, and just ahead of the busy summer driving season.
The cyberattack exposed the particular vulnerability not only of the US' energy infrastructure, but particularly of the pipeline sector that has only voluntary federal guidelines and multiple potential weak points in older technology in more rural field offices.
The Colonial restart came after the federal government had taken several steps to expedite fuel transportation, including waiving certain fuel standards, eliminating restrictions on truckers' driving hours, and preparing to issue waivers on Jones Act-qualified tankers to move waterborne products.
As MRC informed previously, Valero Energy chartered an oil products' tanker for storage in the US Gulf Coast on Friday amid a cyber attack that shut the Colonial pipeline, the biggest US fuel pipeline.
Besides, last week, Marathon Petroleum, the largest US refiner, said it could meet its supply commitments but was working to find alternative ways to ship motor fuels to the eastern United States if the Colonial Pipeline shutdown is extended.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC