August 25, 2011 [OPIS] - Savannah-based Colonial Oil Industries is expected to keep most of its six East Coast oil products terminals open for business, except for one at Wilmington, N.C., over the next few days during the passage of the north-bound Hurricane Irene, shipping sources told OPIS on Thursday.
This would mean a stoppage to rack supply activity and marine operations at that terminal for a few days. A precautionary terminal shutdown would have minimal impact on regional rack supplies because of an expected fall in demand during that time period.
As of late Thursday afternoon, Colonial is still monitoring the storm situation, and it has yet to make a decision to shut its Wilmington terminal.
Hurricane Irene, a Category 3 storm, is expected to brush the outer banks of the North Carolina coast sometime on Friday.
The Coast Guard Captain of the Port set condition X-ray at 8 p.m. Wednesday for the Port of Hampton Roads in preparation for Hurricane Irene. Condition X-ray is set when gale force winds are expected within 48 hours. During the next 24 hours, the Coast Guard will identify and track all vessels in port, establish contact with emergency management agencies at the local, state and federal levels, and work closely with port and industry officials to minimize damage in the event the storm impacts Hampton Roads.
If and when port readiness condition Yankee is set, meaning hurricane force winds are expected within 24 hours, vessel movement shall be restricted and all movements must be approved by the Captain of the Port. A precautionary shutdown of Wilmington terminal could offer a clue to a possible response from terminal owners in New Jersey and New York this weekend if the hurricane does not deviate from its current projected path.
The company operates ocean terminals in Savannah, Ga.,; Charleston, S.C.; Jacksonville, Port Everglades, and Tampa, Fla.; and Wilmington, N.C. It also markets fuel at more than 40 pipeline terminals throughout the U.S. Southeast and through Colonial Caribbean.
The Colonial ocean oil products terminal at Wilmington, N.C., appears to be in the crosshairs of the incoming hurricane, which is packing winds of 115 mph.
The ports in North Carolina remain on a hurricane watch, and are expecting tropical storm condition within the next 72 hours. The ports are open to commercial vessel traffic as of Thursday, a U.S. Coast Guard official said.
Ports in Virginia are expecting tropical storm condition within 48 hours, moving to Port Condition X-Ray from Whiskey on Thursday. Hampton Road port in Virginia, the gateway to Baltimore, remains open as of Thursday.
