The operator of the largest petroleum pipeline between Texas and New York, which was shut down after a ransomware attack, declined on Sunday to say when it would reopen, raising concerns about a critical piece of infrastructure that carries nearly half of the East Coast’s fuel supplies. While the shutdown has so far had little impact on supplies of gasoline, diesel or jet fuel, some energy analysts warned that a prolonged suspension could raise prices at the pump along the East Coast and leave some smaller airports scrambling for jet fuel.
Colonial Pipeline, the pipeline operator, said on Sunday afternoon that it was developing “a system restart plan” and would restore service to some small lines between terminals and delivery points but “will bring our full system back online only when we believe it is safe to do so.”
The company, which shut down the pipeline on Friday, acknowledged on Saturday that it had been the victim of a ransomware attack by a criminal group, meaning that the hacker may hold the company’s data hostage until it pays a ransom. Colonial Pipeline, which is privately held, would not say whether it had paid a ransom. By failing to state a timeline for reopening on Sunday, the company renewed questions about whether the operations of the pipeline could still be in jeopardy.
The shutdown of the 5,500-mile pipeline was a troubling sign that the nation’s energy infrastructure is vulnerable to cyberattacks from criminal groups or nations.
Energy experts predicted that traders would view the company’s announcement on Sunday as a sign that the pipeline would remain shut at least for a few days. Tom Kloza, global head of energy analysis at Oil Price Information Service, said he thought gasoline futures would rise 2 to 3 percent beginning Sunday night and Monday.
Nationwide, the AAA motor club reported that the average price of regular gasoline did not budge from $2.96 a gallon from Saturday to Sunday. New York State prices remained stable at $3, and in some Southeastern states like Georgia, which are considered particularly vulnerable if the pipeline does not reopen quickly, prices moved up a fraction of a penny a gallon.
The pipeline attack came at the beginning of the summer driving season, when fuel prices traditionally rise anyway.
“Even a temporary shutdown will likely drive already rising national retail gas prices over $3 per gallon for the first time since 2014,” said Jay Hatfield, chief executive of Infrastructure Capital Management and an investor in natural gas and oil pipelines and storage.