Colonial Pipeline, the largest U.S. fuel pipeline company, has suspended operations since May 7 following a cyber attack. The Federal Bureau of Investigation (FBI) confirmed Monday (May 10) that the Darkside ransomware group was responsible for disrupting Colonial Pipeline’s network.
The FBI said it will continue its investigation with Colonial Pipeline, as well as government partners.
Colonial Pipeline also said the attack involved ransomware, in which attackers seize control of computer systems and demand payment. But the company did not say what the cyber attackers were demanding or whether a ransom had been paid.
The cyberattack is currently being investigated by the FBI, the Department of Energy (DOE) and the Cybersecurity and Infrastructure Security Agency (CISA). In addition, U.S.-based cybersecurity firm FireEye Inc. is also investigating the attack, according to people familiar with the matter.
Colonial Pipeline said Monday afternoon that some parts of its system are coming back online and hopes to have service largely restored by the end of the week.
Colonial Pipelin said in a statement that the company, in compliance with relevant federal regulations and in close consultation with the Department of Energy, “is gradually restoring some portions of our pipeline.” The DOE is leading and coordinating the federal government’s response.
The company said the situation “is still evolving and continues to evolve” and that it is following a gradual process that will restore service to various segments based on a phased approach. The company’s goal is to significantly restore operational service by the end of the week.
Colonial Pipeline, which operates the 5,500-mile Colonial Pipeline system, is the largest refined product pipeline in the United States, transporting more than 100 million gallons of fuel products per day and accounting for approximately 45 percent of fuel consumption on the East Coast, according to the company’s website. It provides fuels including gasoline, diesel, jet fuel and heating oil, and serves U.S. military installations.
Gasoline futures on Wall Street moved slightly higher early Monday afternoon after spiking to their highest level in about three years in overnight trading.
“The initial price swings are a knee-jerk reaction to the expected severe or prolonged impact on gasoline, heating oil and other product supplies.” Darwei Kung, head of commodities at DWS Group, said, “I think people are looking at the situation now and understanding that the disruption may not be as severe as the initial knee-jerk reaction would suggest.”
Colonial Pipeline said Sunday night (May 9) that four of its main lines remain offline, but some smaller lines between terminals and delivery points are now operational. The pipeline’s owners include Royal Dutch Shell.
“We are restoring other lateral services and will only bring our entire system back online if we believe it is safe to do so and in full compliance with all federal regulatory requirements.” The company added in a statement Sunday night.
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