Emergency Declared After Cyberattack, Gas Pipeline Shutdown In NJ

NEW JERSEY — The U.S. government has declared an emergency after a cyberattack prompted a shutdown of a major gasoline pipeline in New Jersey, an incident that could cause shortages and impact fuel prices in the region.

The Federal Motor Carrier Safety Administration declared an emergency in response to the "unanticipated shutdown" of the Colonial pipeline, which supplies gasoline, diesel, jet fuel and other petroleum products through New Jersey and other impacted states and territories.

The company says it delivers 45 percent of the fuel used in the East Coast. Triple-A reported that gas prices could rise over $3 in New Jersey and elsewhere.

The impacted states and territories also include Alabama, Arkansas, District of Columbia, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.

NBC News reported that a "Russian criminal group" may be responsible for a ransomware attack that shut down the major U.S. fuel pipeline, two sources familiar with the matter said Sunday. The group, known as DarkSide, has a "sophisticated approach to the business of extortion," the sources said.

Fuel shortages could happen because of the shutdown, federal officials said. The emergency declaration provides for regulatory relief and assistance in supporting emergency relief efforts to transport gasoline, diesel, jet fuel and other refined petroleum products into New Jersey and other affected states.

The nation's price average, now at $2.96, will likely continue to climb this week in reaction to the shutdown, according to the Automobile Association of America.

At this time, some lateral lines have reopened, but there is no word of when the mainline, including the gasoline line, will be operational, Triple-A said.

The nation’s top 10 largest weekly increases were here: Michigan (+15 cents), Kentucky (+12 cents), Florida (+10 cents), Delaware (+10 cents), Indiana (+10 cents), West Virginia (+9 cents), Utah (+9 cents), Texas (+9 cents), New Jersey (+8 cents) and Pennsylvania (+7 cents).

On the week, the national gas price average jumped six cents to $2.96. If the trend continues, an increase of three more cents would make the national average the most expensive since November 2014 – the last time the U.S. saw average prices at $2.99 and higher.

“This shutdown will have implications on both gasoline supply and prices, but the impact will vary regionally. Areas including Mississippi, Tennessee and the east coast from Georgia into Delaware are most likely to experience limited fuel availability and price increases, as early as this week,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “These states may see prices increase three to seven cents this week.”

Colonial Pipeline Co. said it learned it was the victim of a cybersecurity attack and has since determined that the incident involved ransomware.

Quickly after learning of the attack, Colonial said it "proactively took certain systems offline to contain the threat."

"These actions temporarily halted all pipeline operations and affected some of our IT systems, which we are actively in the process of restoring," the company said.

Cybersecurity experts were immediately engaged after discovering the issue and launched an investigation into the nature and scope of the incident, the company said.

"We have remained in contact with law enforcement and other federal agencies, including the Department of Energy, who is leading the Federal government response," the company said.

Maintaining the operational security of the pipeline, in addition to safely bringing systems back online, remains the company's highest priority, Colonial said. Over the past 48 hours, Colonial pipeline personnel say they have taken additional precautionary measures to help further monitor and protect the safety and security of its pipeline.

"At this time, our primary focus continues to be the safe and efficient restoration of service to our pipeline system, while minimizing disruption to our customers and all those who rely on Colonial Pipeline," the company said. "We appreciate the patience and outpouring of support we have received from others throughout the industry."