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FACTBOX-NY Harbor oil recovery stalls; Bayway, Bayonne struggle

(Updates with IMTT Bayonne) Nov 5 (Reuters) - The gradual recovery of the New York Harbor oil - trading hub after Hurricane Sandy stalled on Monday as two of the area's most important facilities struggled to return to normal. Phillips 66 confirmed that the region's second-largest refinery, the 238,000 barrel-per-day Bayway plant in New Jersey, would likely be shut for another two to three weeks as repairs are carried out, primarily on electrical equipment damaged by saltwater, as Reuters reported earlier. And only half of the facilities at the region's biggest oil terminal, the 16 million barrels IMTT Bayonne, were fully operational, according to half-owner Macquarie Infrastructure Company. It said IMTT was working through the week to ensure the terminal ``re turns to full operations as quickly as possible and permitted''. While more terminals and truck racks resumed operations with commercial power, and tankers plied key waterways, the area remains hobbled one week after Sandy dealt an unprecedented blow to the country's biggest and most important fuel trading center. On the streets of New York and New Jersey, fuel shortages and lengthy gasoline lines showed signs of easing after the military rushed fuel to the region, the government tapped 2 million gallons of its heating fuel reserve and New Jersey instituted rationing by even-odd license plate numbers in a dozen counties. Heating oil supplies were tight in the region, just days before temperatures were expected to drop to below freezing.

KEY DEVELOPMENTS ON MONDAY:

* IMTT BAYONNE oil tank farm and terminal, which accounts for about a fifth of the harbor's capacity, was only half back to normal by Monday, although damage assessments found that the majority of the facility's piers were ready for use and there had been no oil leaks, according to co-owner Ma cquarie Infrastructure Company. It gave no time frame for restoring full operations, but said it IMTT would work through the week -- including with relevant authorities -- to return to full operations.

* PHILLIPS 66 said it expects to resume ``normal operations'' at its 238,000 bpd Bayway refinery in Linden, New Jersey, in two to three weeks. The plant has been shut since Oct. 29, and sources had said it appeared to sustain serious damage to the electrical equipment after being flooded by Sandy's 14-foot storm surge. Phillips also confirmed it had spilled some 7,700 gallons of fuel. Its terminal at Tremley Point, New Jersey, is expected to be operating at a limited capacity by the end of November. Phillips 66 also said it had restored the refinery's capability to pump existing refined product inventory to the terminal, repaired the refinery's marine dock in order to receive barge shipments of fuels and made arrangements with third-parties to supply fuel to the refinery and terminal through pipelines and marine transport.

* COLONIAL PIPELINE said its Linden, New Jersey, hub, the terminus of the 825,000 bpd fuel line from the Gulf of Mexico, was still sending fuel out to seven of its 20 customer terminals, with an additional five ``scheduled to resume operations this week.'' It said commercial power remains stable and emergency generators will stay on site until a new storm front due on Wednesday passes.

* BUCKEYE PIPELINE said its Linden line was able to receive fuel from all existing locations and that Colonial Pipeline, Harbor Pipeline and Kinder Morgan's Carteret terminal had all resumed operating into Linden.

* KINDER MORGAN said it resumed limited operations at its Carteret and Perth Amboy terminals in New Jersey, with portable generators at both sites, as well as on Staten Island, and limited inbound and outbound product movement. It has resumed limited marine operations at Carteret and hopes to do so soon for Perth Amboy and Staten Island.

* COAST GUARD removed restrictions along the Arthur Kill waterway, which separates Staten Island from New Jersey, as long as vessels move slowly along its waters, a Coast Guard agent said. The waterway saw its first oil tanker in a week on Sunday, with the 50,000-tonne Glory Express heading through the channel toward the Kinder Morgan terminal in Carteret. The Arthur Kill is the site of a major cleanup after flooded tankers at Motiva Enterprises' Sewaren, New Jersey, terminal spilled diesel into the water.

* BP Plc's 1.45 million barrel capacity oil terminal in Carteret had reopened familiar with the matter said.

MAJOR DEVELOPMENTS ON THE WEEKEND:

* HESS CORP said on Sunday that power was also partially restored Saturday night at its 70,000 barrel-per-day refinery in Port Reading, New Jersey. The company said it will need full power before restarting the plant and that it would take ``several days'' to bring in-plant utility systems back online, which must be done before any restart. It resumed marine operations at the Brooklyn terminal, while those in Bayonne, Edgewater, Newark, Roseton and Woodbridge remain suspended.

* NUSTAR ENERGY LP said it hoped to reestablish pipeline and barge deliveries at its Linden, New Jersey, marine and storage terminal ``very soon'' and that all eight truck racks at the site were operational. It previously said the 4.1-million-barrel terminal was severely damaged by Sandy.

* IMTT BAYONNE's 16 million barrel oil terminal, the biggest in New York Harbor with about one-fifth of the total capacity, is partially operational but still ``coming back online'' after losing power in the storm, said terminal manager Richard Fisette.

* DELTA AIR LINES INC's Monroe Energy 185,000 bpd refinery in Trainer, New Jersey, resumed normal operations and is expected to have all units at full rates after a lengthy maintenance turnaround. It was not shut during Sandy. Below is a list of refineries, fuel pipelines and ports impacted by the storm:

COMPANY PLANT CAPACITY STATUS

(bpd)

PBF Energy Delaware City, 190,000 Operations normal.

Delaware

PBF Energy Paulsboro, New 180,000 Operations normal.

Jersey

Hess Corp Port Reading, New 70,000 Power partially restored

Saturday night. Jersey

Philadelphia Philadelphia, 330,000 Company said on Nov. 2 it

would be back to normal schedules

Energy Solutions Pennsylvania this weekend after delays in

crude deliveries.

Monroe Energy Trainer, 185,000 All units running normally

after turnaround, full rates seen

Pennsylvania within several days. Phillips 66 Linden, New Jersey 238,000 Shut down. Could be weeks

away from restarting due to heavy damage from salt-water flooding, source familiar said. Phillips 66 says power has been restored, but has not provided timeline for restart.

Imperial Oil Ltd Sarnia, Ontario 121,000 Returning to normal service

as of Oct. 31 after power outage. NEW YORK HARBOR OIL TERMINALS STILL SHUT BY SANDY:

COMPANY CITY STATE CAPACITY (bbls) Update Date Hess Bayonne NJ 11/3/2012 Hess Newark* NJ 11/2/2012 Motiva Newark NJ 1,113,000 10/31/2012 Hess Perth Amboy NJ 11/2/2012 Motiva Sewaren NJ 5,000,000 10/31/2012 Phillips 66 Tremley Point** NJ 11/3/2012 Motiva Brooklyn NY 10/31/2012 Motiva Long Island NY 222,000 10/31/2012 Hess Woodbridge NY 11/3/2012 NuStar Energy Linden NJ 4.1 mln bbls 11/4/2012 Hess Roseton 11/3/2012 * Truck racks operational. Hess owns 20 terminals with an aggregate storage

capacity of 21 million barrels in its East Coast marketing areas.

** Phillips 66 said it expected the Tremley Point terminal to resume limited operations by the end of November.

TERMINALS WITH REDUCED OPERATIONS:

Colonial Pipeline Linden NJ Open, commercial power 11/4/2012

back, serving 7 terminals

IMTT Bayonne NJ 16,000,000 Partially open 11/4/2012 Motiva Bridgeport CT 1,290,000 Open with reduced 11/4/2012

operations

Hess Groton CT 812,185 Process of restarting 11/3/2012 Hess Pennsauken Process of restarting 11/3/2012 Kinder Morgan Carteret, NJ 7,833,080 Generator power, limited 11/5/2012

operations/shipments; marine ops resumed

Kinder Morgan Perth Amboy, NJ 3,543,388 Generator power, limited 11/5/2012

operations/shipments; marine ops seen soon

Kinder Morgan Staten Island, NJ 2,959,700 Generator power, limited 11/5/2012

operations; hopes to resume marine ops seen soon

TERMINALS REPORTED OPEN BY COMPANIES

COMPANY LOCATION STATE CAPACITY UPDATE AS OF Kinder Morgan Philadelphia PA 11,878,462

11/4/2012

Magellan Midstream Wilmington DE 2,842,000

11/4/2012

Magellan Midstream New Haven CT 4,000,000

11/4/2012

Motiva New Haven CT 1,600,000

11/4/2012

Motiva Baltimore MD 1,100,000

11/4/2012

Motiva Fairfax VA 360,000

11/4/2012

Motiva Richmond VA 210,000

11/4/2012

Motiva Providence RI 1,458,000

11/4/2012

NuStar Energy Paulsboro NJ 90,800

11/4/2012

NuStar Energy Virginia Beach VA 40,000

11/4/2012

NuStar Energy Dumfries VA

11/4/2012

NuStar Energy Piney Point MD 5,403,000

11/4/2012

NuStar Energy Andrews AFB MD

11/4/2012

NuStar Energy Baltimore MD 832,000

11/4/2012

Phillips 66 Riverhead NY

11/4/2012

Hess Brooklyn NU

11/4/2012

BP Carteret NJ 1,445,000 11/4/2012

TERMINALS REPORTED OPEN BY DOE:

Global Partners Inwood NY

11/4/12

Global Partners Newburgh NY

11/4/12

Global Partners Oyster Bay NY

11/4/12

Castle Port Morris Bronx NY 846,000

11/4/12

Gulf Oil New Haven CT

11/4/12

Northville Industries Port Jefferson NY

11/4/12

Schildwachter Oil Bronx NY

11/4/12

Buckeye Terminals, LLC Linden + NY 4,000,000

11/4/12 Inwood

Carbo Industries, Inc. Inwood, Long NY 5,900,000

11/4/12 Island

OTHER TERMINALS IN NEW YORK HARBOR AREA:

COMPANY LOCATION CAPACITY

STATUS

Center Point Terminal Company New Jersey, NY Harbor

1,018,300 Unknown

CITGO Petroleum Corp. Linden, NJ

3,669,250 Unknown

Getty Terminals Corp. New Jersey, NY Harbor

1,018,300 Unknown

Getty Terminals Corp. Bronx, NY

23,000 Unknown

Gulf Oil, Limited Partnership Linden, NJ

568,374 Unknown

Lorco Petroleum Services New Jersey, NY Harbor

476,190 Unknown

Metro Terminals Corp. Brooklyn, NY

207,000 Unknown

Sprague Energy Corporation Long Island, NY

80,263 Unknown

Sunoco Logistics Partners, LP New Jersey, NY Harbor

505,457 Unknown

(Reporting by Selam Gebrekidan, Joshua Schneyer, Janet McGurty, Edward McAllister and Jonathan Spicer in New York; Editing by Marguerita Choy, Jim Marshall, Andre Grenon and Leslie Adler)