Colonial shuts down largest US gasoline pipeline to investigate leak

On January 15, 2025By Littum

(Bloomberg) — Colonial Pipeline Co . shut down the largest U.S. fuel pipeline on Tuesday to investigate a potential leak in Georgia.

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The company’s Line 1 transports 1.5 million barrels of gasoline per day between Houston, Texas and Greensboro, North Carolina.

The shutdown is expected to last about 12 hours, according to people familiar with the matter, who asked not to be named to discuss private matters.

New York gasoline futures on Tuesday were the highest since October.

Colonial confirmed the shutdown, saying in a statement that it is “responding to a report of a potential gasoline release on our right of way in Paulding County, Georgia.”

The pipeline disruption comes amid rising gasoline inventories on the East Coast and modest gasoline demand in the U.S., which could limit upward pressure on prices depending on how long the supply constraint lasts.

East Coast gasoline inventories have been rising for the past six weeks through Jan. 3, while the four-week average of U.S. gasoline demand has fallen over the two weeks ended Jan. 3.

(Addition of futures in fourth paragraph)