Colonial Pipeline shut as Nicholas hits US

Power outages in Texas caused Colonial Pipeline to pre-emptively shut down its main fuel lines.
Power outages in Texas caused Colonial Pipeline to pre-emptively shut down its main fuel lines.

The largest US fuel line has resumed partial operations as oil and gas facilities weathered Tropical Storm Nicholas' landfall in Texas, suffering less damage than in Hurricane Ida two weeks earlier.

Rains, flooding and power outages affected Texas and Louisiana, which were still trying to recover from Hurricane Ida.

That storm shuttered most US Gulf offshore oil and gas production.

Power outages in the Houston area caused Colonial Pipeline to pre-emptively shut down its main gasoline and distillate fuel lines, the company said in a notice to shippers.

Colonial Pipeline on Tuesday said it had resumed operations on its main gasoline Line 1, while distillate Line 2 remained down due to a power outage in the Houston area after Hurricane Nicholas made landfall.

Royal Dutch Shell halted production at its Perdido offshore oil platform due to heavy winds and US liquefied natural gas producer Freeport LNG said processing at its Texas coast facility was halted, likely due to a power outage.

The storm caused widespread power outages as it crossed over the Houston metropolitan area late on Monday night and early on Tuesday morning but that number shrank throughout Tuesday.

Colonial supplies roughly 2.5 million barrels a day of refined products to some of the busiest US fuel markets, mostly in the southeast and east coast.

The line also shut during Hurricane Ida but was restarted without incident a few days after the storm landed.

More than 39 per cent of the US Gulf of Mexico's production of crude and natural gas remained shut on Tuesday, offshore drilling regulator Bureau of Safety and Environmental Enforcement (BSEE) said, following Hurricane Ida's passage through Louisiana.

Australian Associated Press