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Colonial Pipeline to Shut Down Vital Fuel Lines due to Hurricane Harvey
Colonial Pipeline, the biggest US fuel system, announced today the closure of a key line that supplies gasoline from the US Gulf to the East Coast, due to Hurricane Harvey related refinery closures that are limiting supply. Of the 26 refineries connected to the Colonial system, 13 were located between Houston and Lake Charles, Louisiana, an area heavily affected by the storm, newswires report.
On Wednesday, Colonial had already closed down another line that transports diesel and aviation fuels. The closures have led to a total reduction of 3M b/d in products flow through the pipeline.
The news sent US gasoline prices surging to a 2-year high and benchmark product prices are on average up more than 20% since August 23, just before the storm.