Hurricane Florence prompts EPA fuel waiver: Update

Adds Colonial plans.

Georgia joined southeastern US hurricane preparations today as forecasts shifted Hurricane Florence's path further south.

The state today issued an emergency declaration, joining Virginia, North Carolina and South Carolina in suspending transportation regulations related to the movement of fuel and other resources as the category 3 storm approached the coast.

"The state is mobilizing all available resources to ensure public safety ahead of Hurricane Florence," governor Nathan Deal said.

Major refined products pipelines into the region continued to operate as officials coordinated evacuations and fuel resupply efforts. The Environmental Protection Agency waived summer fuel requirements three days early to add flexibility to the region's supply.

The waiver allows the sale of winter-grade gasoline more prone to evaporation in summer months, as well as blends of summer and winter gasoline, in North Carolina and South Carolina evacuation zones. The summer fuel season ends on 15 September.

Chances for Florence to strengthen narrowed today as the storm moved from south of Bermuda toward evacuating US Atlantic coastlines. The hurricane was forecast to increase to 145 mph sustained winds before weakening as it hit the coast. Florence was shifting south compared with early tracks that had the storm moving up into Virginia.

Forecasts today had the storm moving west toward Georgia after reaching the coast.

Lashing winds risk causing power outages, and expected heavy rains could further disrupt fuel distribution in the region.

North Carolina and South Carolina host no major US refineries but serve as a throughway to major refined products pipelines supplying the Atlantic coast. Both Kinder Morgan's 600,000 b/d Plantation Pipeline and Colonial Pipeline's 2.5mn b/d trunk line system move US Gulf coast refinery production through South Carolina to Greensboro, North Carolina, terminals before continuing into Virginia. Colonial's system delivers into the New York Harbor market.

Colonial today expected to continue operating through the storm. There would not be enough time to change its RVP transition schedule but the pipeline would allow RBOB delivery to all destinations supplied by its major tank farm in Greensboro, North Carolina.

Colonial staged generators to continue operations in case the storm knocked out power and expanded preparations into Georgia today.

Plantation did not comment on how it would adjust operations in light of the EPA waiver.

Airlines cancelled or redirected flights ahead of landfall later this week. Southwest Airlines suspended operations at South Carolina's Charleston International Airport yesterday and planned to suspend operations at Charlotte and Raleigh in North Carolina and at Norfolk and Richmond in Virginia beginning tomorrow. Delta Air Lines allowed customers in markets from central Georgia to Virginia waivers to change flight plans.