Lightning Fire at Explorer Pipeline's Glenpool Hits Fuel Supply

A lightning strike set three storage tanks ablaze at Explorer Pipeline's Glenpool tank farm near Tulsa, Oklahoma, early Monday, threatening flows on one of the largest refined products pipeline systems in the U.S.

The fire ignited natural gasoline stored at the facility, a critical hub on Explorer's 1,800-mile network that moves gasoline, diesel and jet fuel between the Midwest, Oklahoma and Texas. The Glenpool site can hold roughly 3.4 million barrels across more than 30 tanks, according to a government report. Explorer's southern system ships 660,000 barrels a day, while its northern leg reaches St. Louis and Chicago with 450,000 barrels of daily capacity.

Operations at the tank farm have been suspended, the company said Monday afternoon. Operations outside Glenpool remain unaffected.

Phillips 66 (PSX) halted operations at an adjacent facility that feeds into the tank farm. The Phillips 66 site suffered no damage, and the company's nearby Wood River refinery is not affected, the company said.

The fire likely will disrupt fuel flows at a time when U.S. gasoline averages above $4 a gallon and diesel tops $5, both records for August. The tight market leaves little room for supply hiccups.

Natural gasoline, a refined product from natural gas, is used as a gasoline additive and also exported to Canada as a diluent for heavy crude. The three tanks involved held that product, which is lighter than crude but still a key blending component.

Phillips 66 carries an Alpha Score of 66 (Moderate) on AlphaScala's proprietary risk model, reflecting its exposure to midstream and refining operations. The stock page is available here. The fire's full impact on supply will depend on how long Glenpool remains offline and whether Explorer can reroute volumes through its other terminals.