BP's Olympic Pipeline system remains shut ahead of holiday weekend

BP Pipelines North America's Olympic Pipeline system remained shut for a 14th day as crews continued round-the-clock excavation and repair work following a refined products leak east of Everett, Washington, with no timeline available for restarting the critical fuel artery that supplies the Pacific Northwest, according to latest comments from BP.

The prolonged shutdown has sent gasoline prices on an uptrend across the region, with Portland's regular suboctane differential jumping 7 cents/gal to reach a one-month high of 27 cents/gal above NYMEX November RBOB futures, according to Platts, part of S&P Global Energy. The differential has climbed 26 cents/gal since the pipeline system was first shut down Nov. 11 after a fuel sheen was discovered in a drainage ditch.

"Olympic Pipeline continues to respond to a release of refined products east of Everett, Washington," BP said in its latest update Nov. 24. "The pipeline system remains shut down at this time. Over 200 feet of pipeline have been excavated to date. Crews are operating around the clock and will continue overnight operations tonight."

The company initially restarted its 16-inch line Nov. 16 following a successful leak test, allowing fuel deliveries to resume briefly, including jet fuel to Seattle-Tacoma International Airport. However, operations were halted again the following day after crews observed an increase in product at a collection point on the response site.

The extended outage has drawn sharp criticism from US Senator Maria Cantwell, who sent a letter to BP demanding answers about the company's leak detection systems and maintenance programs. Cantwell expressed particular concern about the timing of the shutdown, which comes just before a holiday weekend when an estimated 900,000 people are expected to travel through Seattle-Tacoma International Airport, she said in a letter Nov. 21.

"The fact that a blueberry farmer -- not BP -- first identified the spill, and that it is still not known for certain which of the two pipelines is leaking, raises significant concerns about the capabilities of the Olympic Pipeline's leak detection systems," Cantwell wrote in her letter to BP.

The senator noted that Seattle-Tacoma International Airport has lost its primary source of jet fuel during the busiest travel period of the year, requiring 90 trucks operating 24 hours daily to deliver even half the fuel the airport needs. The airport generates $17 billion in revenue for the region and supports more than 170,000 jobs, serving as a major hub for Alaska Airlines and Delta Air Lines.

The Olympic Pipeline system typically transports about 325,000 b/d of gasoline, diesel and jet fuel across its 400-mile network from refineries in Anacortes and Ferndale, Washington, to terminals in Seattle, Tacoma, Vancouver, Washington, and Portland, Oregon. BP has confirmed that an undetermined amount of product leaked from the 20-inch diameter pipeline, which was identified as the source of the release six days after the initial discovery.