* Gasoline lines shrink as terminals operations resume
* Supply worries remain in New York, New Jersey
* Leak reported at Phillips 66 Bayway refinery
* 10 of 57 terminals in Sandy's path still shut -Energy Dept
By Selam Gebrekidan
NEW YORK, Nov 5 The New York Harbor energy
network inched closer to recovery on Monday, one week after
powerful storm Sandy ripped through one of the nation's biggest
fuel trading hubs, and miles-long gasoline lines that infuriated
drivers began to ebb.
More supplies arrived in the New York and New Jersey region
aboard barges and restarted pipelines. Many of the fuel
terminals that dot the harbor resumed service, although at least
10 of them remained shut.
There was no word on progress at two idled New Jersey
refineries, which account for a quarter of the region's
Just as oil traders breathed easier as the wholesale market
mended, motorists found some relief on the roads.
While travel group AAA estimated that more than a third of
the region's retail outlets were still shut -- either because
they did not have power or days of panic buying had drained them
-- the outlook was improving by the day.
"By the end of this week we still won't be back to normal,
but the situation should at least be manageable," said Ralph
Bombardiere, head of Gasoline and Repair Shop Association of New
"While more (stations) now have power restored, the
increased demand they're seeing is emptying the tanks faster
than normal," he added.
Long lines persisted in northern New Jersey, where many gas
stations do not have power and are not able to connect to
generators. But in parts of the state just east of New York
City, only a few dozen cars were lined up by gas stations.
In New York, between 60 percent to 65 percent of gas
stations were open Monday, according to AAA's estimates, but
they could hardly keep up with the growing demand. Some 55
percent to 60 percent were open in New Jersey.
Any progress made unraveling the supply issues could soon be
undone by a cold storm charging toward the Northeast and
expected to hit the coast on Wednesday.
Heating oil terminals were returning to service in the Bronx
and Brooklyn boroughs of New York City. Barge supplies to a
Brooklyn heating fuel terminal expected to arrive on Sunday
night, were coming in on Monday, according to the New York Oil
"We're taking the supply situation one day at a time and we
will have enough to last until mid-week," said John Maniscalco,
who heads the association.
Hess Corp., one of the biggest retailers on the East
Coast, took the unusual step on Sunday of publishing inventory
levels - normally considered a commercial secret - at all of its
regional stations to help motorists find gasoline.
BACK AFTER A BREAK
Suppliers in Linden, New Jersey, a major fuel hub that
serves that state and New York, were revving up after mainline
power returned on Sunday.
Colonial Pipeline started delivering to a third
of its customer terminals from its Linden facility on Sunday, a
spokesman said. Colonial expects five more customer terminals to
resume operations this week.
Buckeye Pipeline said it had restarted pipelines
that service New York City, northern New York state and New
Jersey on Saturday. Nustar Energy LP hoped to restart
deliveries from Linden "very soon," a spokesman said, with the
actual timing still unclear.
The U.S. Coast Guard opened the Arthur Kill waterway to
vessels on Monday on condition they move slowly along its
waters. New York Harbor is also open to vessels so long as they
can find safe harbor in one of the coastal terminals.
One tanker, the Glory Express, was on the waterway on Sunday
afternoon headed to Kinder Morgan's Carteret terminal in New
Jersey, according to Reuters shipping data.
Hess said on Sunday night that it was expecting its first
barge and pipeline shipments at its Port Reading, New Jersey,
terminal. Power was partly restored to the 70,000-bpd Port
Reading refinery on Saturday.
Only 10 of the 57 fuel terminals that were in Sandy's path
were still shut on Monday afternoon, according to the U.S.
Energy Department. But some of those were large facilities, such
as Motiva's 5 million barrel Sewaren tank farm, where cleanup
efforts were nearly complete after two tankers spilled 378,000
gallons of diesel into the Arthur Kill waterway.
By Monday, authorities had cleaned up 322,000 gallons of the
leaked diesel, according to Larry Ragonese, a spokesman with the
New Jersey Department of Environmental Protection.
The full extent of the damage Sandy wrought on the energy
network was still emerging on Monday.
The U.S. Coast Guard said Phillips 66's Bayway
refinery in Linden, New Jersey, leaked about 7,770 gallons (185
barrels) of fuel after the storm struck.
The 238,000-barrel-per-day refinery was shut ahead of
Sandy's arrival and remained idle over the weekend while the
company assessed the damage. Phillips 66 did not return emails
and phone calls seeking comment on Monday.