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Colonial Pipeline halts operations after cyberattack; largest refined products pipeline in US

Colonial Pipeline is the largest refined products pipeline in the US, transporting more than 100 million gallons of fuel daily to meet the energy needs of consumers from Houston, Texas to the New York Harbor. On 7 May, the Colonial Pipeline Company learned it was the victim of a cyberattack involving ransomware. In response, the company took certain systems offline to contain the threat; this has temporarily halted all pipeline operations.

System-Map-Simplified

Colonial Pipeline is 5500 miles in length, and links refineries on the Gulf Coast to the eastern and southern US. The pipeline supplies nearly half of the US East Coast’s fuel supply; a prolonged outage could spike gasoline prices just as the summer driving season is approaching.

Upon learning of the issue, the company engaged a third-party cybersecurity firm, which has launched an investigation into the nature and scope of this incident, which is ongoing. The company also contacted law enforcement and other federal agencies.

The US Cybersecurity & Infrastructure Security Agency (CISA) Executive Assistant Director for Cybersecurity, Eric Goldstein, said:

We are engaged with the company and our interagency partners regarding the situation. This underscores the threat that ransomware poses to organizations regardless of size or sector. We encourage every organization to take action to strengthen their cybersecurity posture to reduce their exposure to these types of threats.

Colonial Pipeline Company is a privately held company with headquarters in Alpharetta, Georgia. Originally founded by nine oil companies in 1962, today Colonial is owned by five entities:

  • CDPQ Colonial Partners, L.P.
  • IFM (US) Colonial Pipeline 2, LLC
  • KKR-Keats Pipeline Investors, L.P.
  • Koch Capital Investments Company, LLC
  • Shell Midstream Operating, LLC

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