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Marathon working on other logistics to supply customers if Colonial outage extended

Mark White by Mark White
September 15, 2021
in Logistics
0
Marathon working on other logistics to supply customers if Colonial outage extended

Holding tanks are seen at Colonial Pipeline’s Charlotte Tank Farm in Charlotte, North Carolina, U.S. in an undated photograph. Colonial Pipeline/Handout via REUTERS.

HOUSTON, May 10 (Reuters) – Marathon Petroleum (MPC.N) can meet its supply commitments for now but is working to find alternative ways to ship motor fuels to the eastern United States if the Colonial Pipeline (COLPI.UL) shutdown is extended, a company spokesman said on Monday.

Marathon, the largest U.S. refiner, operates the 585,000 barrel-per-day (bpd) Galveston Bay Refinery in Texas City, Texas, and the 578,000-bpd Garyville, Louisiana, refinery.

“Marathon Petroleum is working with customers and other business partners to determine potential alternative logistics arrangements in the event of an extended shutdown of Colonial Pipeline,” said Marathon spokesman Jamal Kheiry. “At this time, there is no impact to our ability to meet supply commitments.”

A cyberattack last week on Colonial’s software shut the company’s pipeline system, which moves 2.5 million barrels per day of gasoline, diesel and jet fuel to the eastern and southeastern United States. read more

Reporting by Erwin Seba, editing by Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.

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