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Port of Tampa halts vessel traffic

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Fuel terminals struggling to stay supplied

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Fuel distributors warn customers of delays

By Shariq Khan

NEW YORK, Sept 26 (Reuters) - Fuel distributors in

Florida were bracing for supply shortages as government

officials issued dire warnings about strengthening hurricane

Helene, which is forecast to make landfall in the state on

Thursday evening.

Florida is the third-largest gasoline consumer in the United

States, but there are no refineries in the state, making it

dependent on imports. Only two pipelines deliver fuel within

Florida, so a hurricane's hit to waterborne supplies leaves the

state extremely vulnerable to fuel shortages.

Port Tampa Bay, which receives over 17 million tons of

petroleum- and natural gas-related products in a typical year,

has ceased inbound and outbound vessel traffic. The exact

duration of port closures and impact on fuel trade remains

uncertain, the U.S. Energy Information Administration said on

Thursday.

At least two fuel distributors have told customers to expect

deliveries to be delayed. Mansfield Energy on Thursday moved

Florida to its 'Code Red' classification, requesting a minimum

72-hour notice for new deliveries. Mansfield also put Alabama

and Georgia on a 48-hour notice.

Tropic Oil, which typically delivers the day after an order

is placed, asked its customers to prepare for extended wait

times, a representative told Reuters.

Wholesale terminals are struggling to stay supplied due to

the spike in demand, traders at TACenergy told clients. They

expect terminal operators to suspend operations from the Florida

panhandle to Tampa to avoid draining tanks so low that it poses

an operational hazard.

Kinder Morgan ( KMI ), operator of the only fuel pipelines

in Florida, said its bulk terminals in the Tampa area have been

shut in preparation for the storm. Its pipelines are still

operating normally, the company said.

Edison Oil, which pulls fuel from terminals at Tampa and the

Everglades, said it has been stocking up as much as it could to

prepare for shortages after the hurricane.

Power outages will be the major issue for the state's fuel

infrastructure, said Ernie Barsamian, founder of oil and fuel

brokerage The Tank Tiger.

Over 60,000 homes and businesses were out of power in

Florida as of 2:00 p.m. ET. State officials have asked residents

in the path of the storm to prepare to be without power for up

to a week.

Retail fuel prices in Florida have been stable so far but

they will likely creep upwards as power outages and other

disruptions start to build, AAA spokesperson Andrew Gross said.

Regular gasoline was retailing at $3.176 a gallon across Florida

pumps on Thursday, according to AAA data.