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Pipeline Explosion in Alabama Kills One Worker, Injures Several Others

Reuters, November 1, 2016
Reuters

U.S. gasoline futures jumped over 11 percent on Tuesday after Colonial Pipeline Co. shut down its main gasoline and distillates pipelines on Monday after an explosion and fire in Shelby, Alabama, killed a worker. The incident was the second time in two months the company had to close the crucial supply line to the U.S. East Coast, prompting gasoline prices to spike on fears of shortages.

Gasoline futures for December were up about 16 cents, or 11.1 percent, at $1.58 per gallon at 8:05 a.m. EDT (1205 GMT). Earlier in the session, the contract jumped as high as $1.6351, its highest since early June.

A nine-man crew was conducting work on the Colonial pipeline system at the time of the explosion, Alabama Governor Robert Bentley told a briefing. Seven of the workers were injured, with two evacuated by air. The explosion occurred when the crew hit the gasoline pipeline (Line 1) with a track hoe, Colonial said an e-mailed statement late on Monday.

The 5,500-mile (8,850-km) Colonial Pipeline is the largest U.S. refined products pipeline system and transports gasoline, diesel and jet fuel from the U.S. Gulf Coast to the New York Harbor area.

 

(Reporting by Scott Disavino Editing by W Simon)

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Copyright 2017 Thomson Reuters. Click for restrictions.

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