NuStar says plans to resume New York Harbor terminal operations Sept. 2, power restored

NuStar plans to restart operations Sept. 2 at its New York Harbor refined products terminal, following the restoration of power there, a spokesperson said.

Power was lost at the terminal at about 8:30 pm ET Sept. 1 due to the passage of the remnants of Hurricane Ida, spokesman Chris Cho told S&P Global Platts in an email. Operations the terminal were halted at 6:50 pm, he said.

"The terminal received 7-10" of rainfall, but no mechanical damage," Cho said. "And while we have some water standing in low-lying tank fields, portable pumps have been utilized to keep water from impacting equipment. Power was just restored to the terminal so we are assessing the facility now, and if everything checks out well we plan to resume operations later today. None of our other terminals in the Northeast were impacted by this storm."

Other East Coast terminals were shut Sept. 2 in response to regional flooding from the storm, according to market sources. The storm resulted in historic flash flooding along the East Coast, with some areas receiving up to 10 inches of rain, according to the National Weather Service.

According to market sources, Phillip 66's New Jersey terminals -- Linden and Tremley Point -- were also shuttered by Ida.

"No one can get to tanks and inspect product," a market source said. "Vessels are being held out. Everyone is in the same boat so there's no panic buying."

A spokesperson for Phillips 66 was unable to provide an immediate comment on the terminals.

Gasoline market reaction to the terminal closures has so far been muted.

NYMEX RBOB futures were sharply higher earlier Sept. 2, with the front-month October contract up 5.55 cents at $2.1664/gal at 1524 GMT. However, the rally was part of a broader rise in energy prices, and New York Harbor gasoline cracks were only slightly stronger. The ICE NYH RBOB crack versus Brent climbed to $14.90/b midmorning from a Sept. 1 close of $14.58/b.