US Colonial Pipeline shuts operations after cyberattack

HOUSTON (ICIS)–Colonial Pipeline has halted all operations on its pipelines in response to a cyberattack, the company said.

Colonial had taken some of its systems offline to contain the threat, which temporarily halted its pipeline operations, the company said. It also affected some of the company’s information-technology (IT) systems.

Colonial has hired a cybersecurity firm that is investigating the scope and nature of the attack, it said. The company has also contacted law enforcement and other federal agencies.

The company had acknowledged on Friday that it was suffering from network issues. Market sources at the time said it had shut down lines 1 and 2 from Houston.

The gasoline market in the US Gulf has shown little reaction to the news on Friday, with prices settling well within market expectations.

The Colonial Pipeline system operates on a five-day scheduling cycle so if the market will face any reaction it is likely to be with the next scheduling cycle and in the New York Harbor (NYH) region.

The pipeline carries refined products from the Gulf Coast to the East Coast.

Additional reporting by Alex Snodgrass