The company provides approximately 45% of the fuel consumed on the east coast of the United States
Washington— The company announced on Monday that major US pipelines affected by the cyber attack may resume operations later this week.
Colonial Pipeline provided an update on Monday, after the company revealed that it had stopped operations due to the FBI’s ransomware attack related to criminal groups.
The ransomware attack severely affected the pipeline, which, according to the company, provided approximately 45% of the fuel consumed on the East Coast of the United States.
The incident has raised concerns that if this situation persists, gasoline, jet fuel and diesel supplies may be interrupted in parts of the region. There are no reports of fuel shortages.
According to the company, Colonial Pipeline ships gasoline and other fuels to 10 states between Texas and New Jersey.
The company is restarting part of the network. On Sunday, it reported that its main pipeline was still in operation, and some smaller pipelines were in operation. The company did not disclose when it will completely restart the pipeline.
Debnil Chowdhury, CEO of IHS Markit, said: “The downtime is approaching a critical level. If it continues, gasoline and diesel prices on the East Coast may rise.” The analyst added that the last time there was a disruption of this magnitude In 2016, gasoline prices rose by 15 to 20 cents per gallon. However, at that time, the local refining capacity in the Northeast was significantly improved, which would exacerbate any impact.
At the same time, the FBI stated on Monday that the ransomware attack was carried out by a criminal group called “DarkSide.”