UPDATE 1-Colonial Pipeline- System still recovering after storm

Fri Nov 9, 2012 2:37pm EST

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Nov 9 (Reuters) - Colonial Pipeline said on Friday that it is working to overcome problems on its product delivery system, which connects refiners in the U.S. Gulf Coast to the northeast market, after Hurricane Sandy and this week's nor'easter devastated the region's energy network.

Infrastructure issues - including damage to customer facilities linked to Colonial's Linden, New Jersey terminal, road closures, and power outages at many of the region's gasoline stations - could lead to additional shutdowns and a slow service, the company said.

Colonial returned to service its main refined fuels pipeline - Line 3 which runs from Greensboro, North Carolina, to Linden - and resumed service out of its Linden terminal last week.

Since Line 3 was returned to service, breakout-tank storage issues had caused some sequence changes and delays on stub lines, resulting in abnormal cycle times for many locations in North Carolina and south on its system, Colonial said.

However, the company said the delays and abnormal cycle times were temporary and should be back to normal over the next week.

The company said on Tuesday it had resumed service to eight customer terminals connected to its Linden, New Jersey, terminal, while expecting six more to restart by the end of the week.

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