Ransomware attack forces shutdown of largest fuel pipeline in the U.S.

The operator of the country’s largest fuel pipeline, Colonial Pipeline, fell victim to a cybersecurity attack on Friday that involved ransomware, forcing it to temporarily shut down all pipeline operations and raising concern that the outage could lead to spot shortages of gas, diesel and jet fuel.

The company confirmed it was the victim of a ransomware attack Saturday.

Colonial Pipeline has hired a third-party cybersecurity firm to launch a probe into the incident and has contacted law enforcement and other federal agencies. The cyberattack has affected some of its IT systems too.

The F.B.I. was notified of the disruption on Friday and is working closely with the company and government partners, a spokesperson said Saturday.

Colonial Pipeline, which transports nearly half of the East Coast’s fuel supply, said it is “taking steps to understand and resolve this issue.”

“At this time, our primary focus is the safe and efficient restoration of our service and our efforts to return to normal operation,” the company said in a statement.

“This process is already underway, and we are working diligently to address this matter and to minimize disruption to our customers and those who rely on Colonial Pipeline,” the company said.

President Joe Biden was briefed on the incident Saturday morning and the federal government is working to avoid supply disruptions, according to a White House spokesperson.

“The federal government is working actively to assess the implications of this incident, avoid disruption to supply, and help the company restore pipeline operations as quickly as possible,” the spokesperson said.

Colonial operates the largest refined products pipeline in the U.S., transporting 100 million gallons or 2.5 million barrels per day, according to its website. Refined products include gas, diesel, home heating oil and jet fuel. The pipeline also supplies the U.S. military.

Colonial’s system spans over 5,500 miles between Texas and New Jersey, connecting refineries on the Gulf Coast to more than 50 million people in the southern and eastern U.S., according to the company.

Colonial Pipeline is privately held by five entities: CDPQ Colonial Partners, IFM (U.S.) Colonial Pipeline 2, KKR-Keats Pipeline Investors, Koch Capital Investments Company, and Shell Midstream Operating.

Article source: https://www.cnbc.com/2021/05/08/colonial-pipeline-shuts-pipeline-operations-after-cyberattack.html