By BEN LEFEBVRE
Most refineries in the Northeast are back to operating at
planned rates after Hurricane Sandy, but fuel deliveries remain
Sandy, which made landfall in southern New Jersey Monday,
caused refineries with a combination of 1 million bpd in
capacity to shut down or cut operating rates. Most refineries
are back to normal, although power outages have made getting
supply to gas stations difficult and forced drivers to wait in
long lines to refuel.
The fuel shortages currently plaguing drivers in the
Northeast should be alleviated within days, much sooner than
those caused by Hurricane Katrina in 2005, said Neal Walters,
partner at the energy practice of law firm A.T. Kearney.
Katrina destroyed refinery infrastructure, while Sandy merely
jumbled the supply chain, Mr. Walters said.
"The refining capacity that did shut down
and terminals that did shut down were more due to flooding and
power issues," Mr. Walters added. "There's no indication that
any of this should be long term."
Phillips 66's 238,000 bpd Bayway refinery in Linden, N.J., was the
only major refinery in the region still idled. Power had been
restored to the refinery but production hadn't yet restarted, a
company spokesman said Thursday.
Philadelphia Energy Solutions' 335,000 bpd refinery in Philadelphia and Delta
Airlines' 185,000 bpd refinery Trainer, Penn., were near or at
planned rates, sources with the refineries said.
PBF Energy said Thursday that its 180,000 bpd refinery in
Paulsboro, N.J., and 190,000 bpd refinery in Delaware City,
Del., were restored to planned rates after having production
scaled back during the storm.
Customers unable to receive PBF fuel because of power outages
affecting pipelines and terminals were bringing trucks to the
company's rack in Delaware City to take delivery, PBF spokesman
Michael Karlovich said.
Hess Corp. said late Wednesday power remained out at its
70,000 bpd refinery in Port Reading, N.J. A
Hess spokesperson wasn't available Thursday.
The Colonial Pipeline Co. said Thursday it planned to have
its pipeline restart fuel deliveries to the New York Harbor
area from the Gulf Coast on Friday. Portable generators would
allow limited deliveries to be made from its Linden, N.J., facilities by the end of Thursday,
the company said.
The Colonial pipeline delivers up to 800,000 bpd of fuel to
the New York area.
Dow Jones Newswires