Pipeline leak in Alabama causes pump pain across Southeast

ALBANY — Albany motorists awoke Friday to discover the price of a gallon of regular gasoline had jumped by as much as 18 percent. The spike in prices was due to a pipeline leak in Alabama that halted the flow of fuel from the Gulf Coast to the Atlantic Seaboard.

The Colonial Pipeline, which supplies fuel for much of the East Coast and runs from Texas to New Jersey, has been partially closed since a leak was discovered in Helena, Ala. Before the leak was discovered, more than 6,000 barrels of gas (equaling 250,000 gallons) had spilled into the environment.

The company originally anticipated having the pipeline reopened by this weekend, but bad weather has delayed the fix. The partial closure has caused tighter supply for some Southeast and Mid-Atlantic states.

According to AAA, the Southeast has a fairly healthy supply of crude and gasoline inventories, but the market relies on just-in-time inventory and could be disrupted by an extended partial closure of the pipeline. States that could be directly impacted by tighter supplies and slightly higher prices include Alabama, Mississippi, Tennessee, Georgia, South Carolina, North Carolina and Virginia.

“The trouble is, there is no gas in the pipeline right now,” Wright Woodall, owner of Albany-based Woodall Convenience Stores, said. “We’re currently getting split loads of fuel, and I am concerned about running out of gas. That’s not good for us and it’s not good for our customers.”

Industry officials say the availability of premium and diesel could be especially tight.

“While there is plenty of gasoline and crude supply, the pipeline is the most efficient way to deliver the product to Georgia,” said Garrett Townsend, Georgia public affairs director for AAA —The Auto Club Group. “All of these states have already seen the switch from summer- to winter-grade gasoline, so that won’t be a factor.”

According to AJC.com, Gov. Nathan Deal signed an emergency order Tuesday aimed at smoothing the flow of gas into Georgia after the leak caused an immediate bump in gas prices.

Deal’s emergency order temporarily lifts federal restrictions to allow truckers to stay on the road longer to shuttle more fuel into the state, though the order said no “ill or fatigued driver” should be required to work. Any driver who reports they need immediate rest should be given at least 10 hours off-duty, the order said.

Deal also said Friday afternoon he extended the executive order after receiving a waiver from the Environmental Protection Agency.

“We are confident these measures will help ensure Georgians’ uninterrupted access to motor fuel until Alabama’s pipeline is fixed,” he said in a statement.

Woodall said he’d seen only one similar spike before.

“The last time I saw this happen was after Hurricane Katrina,” he said, adding there was no definitive timeline on repairing the leaking pipeline.

“Right now, they don’t know how long it will take to repair the leak,” Woodall said. “I’m hearing it will be fixed some time next week, but that could be by Monday or Friday. I’m not going to speculate. I’d like to think it won’t take long.”

According to AAA, Colonial Pipeline has a solid history of making sure that operations are quickly restored. According to Tom Kloza, Global Head of Energy Analysis for Oil Price Information Service, the Colonial Pipeline could be shipping a normal volume of gasoline next week.

“I do not anticipate areas where motorists won’t be able to find gasoline,” said Kloza. “Crude oil is still in a glut position, so you may see crude oil prices weaken and watch as local gasoline prices go up by five to 10 cents per gallon.”

Nationally, the average price for a gallon of regular gasoline was $2.18 late Friday afternoon and $2.19 in Georgia.