Colonial Pipeline Explosion Shuts Down Major Fuel Line

One person was killed and five others were injured, mere weeks after a spill led to a gasoline shortage in the South.

November 02, 2016

SHELBY COUNTY, Ala. – An explosion killed one and injured five other contract workers who were performing maintenance on the Colonial Pipeline in Alabama, the Wall Street Journal reports. The explosion triggered a fire inside the line. As of yesterday, officials believe the explosion was an accident.

The incident happened a few miles from the site of the September leak in the pipeline, which disrupted fuel supplies for weeks in the South, causing higher gasoline prices and a fuel shortage. The 5,500-mile Colonial Pipeline is the longest U.S. refined products pipeline system that transports jet fuel, diesel and gasoline.

Alternative supplies can be difficult for inland markets to acquire and expensive for northeast port cities to import, Reuters reports. The result of the explosion will likely create higher pump prices and potential shortages, as gasoline retailers scramble to find sources for fuel.

By Tuesday afternoon, Alabama Gov. Robert Bentley declared a state of emergency to facilitate the granting of a waiver from the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration. This waiver is needed to lift the federal government’s limitation on the hours a driver can transport gasoline. The state of emergency is effective November 1 through December 1, 2016, unless sooner terminated.

“Just having one line shut down caused a circus. Imagine having both,” Patrick DeHaan, senior petroleum analyst at GasBuddy, told the Wall Street Journal. “It’s much more grave of a situation, and prices are shooting up.”

During the cleanup from the September leak, pump prices skyrocketed more than 20 cents per gallon in just a few days in Georgia, and some areas of South Carolina and Tennessee. In Atlanta, gasoline stations ran out of fuel.

For more on pump prices and fuel, check out the NACS Retail Fuels Report 2016.

Advertisement
Advertisement
Advertisement