Colonial Pipeline's Main Gasoline Artery Shut for Leak Investigation Through Friday

(Reuters) — Colonial Pipeline's main gasoline artery, Line 1, is expected to be shut through Friday as the company continues to search for the source of a suspected leak in Paulding County, Georgia, it said in a statement on Wednesday.

"Colonial continues on-site work to identify the source of the suspected release on our gasoline pipeline," a Colonial spokesperson said.

The company will provide updates to shippers regarding the restart timeline, it added. In the meantime, it is working with customers on a plan to provide limited gasoline receipts and deliveries via other parts of its system.

U.S. gasoline futures jumped 3% on Wednesday despite a larger-than-expected increase in fuel stockpiles last week, with traders citing the prolonged Line 1 outage.

Service on the pipeline had been widely expected to resume on Tuesday night.

Line 1 is one of two mainlines on the more than 5,500-mile Colonial system, and delivers 1.5 million barrels of gasoline each day from Houston, Texas, to storage tanks in Greensboro, North Carolina, from where the motor fuel is distributed locally or shipped to other markets all the way up to the New York Harbor.

It is almost always chock-full, supplying about half of the U.S. East Coast's daily demand, making it one of the most crucial parts of the domestic U.S. gasoline supply chain.

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