Part of Keystone oil pipeline remains shut after potential leak

293

(Reuters) – A little of TransCanada Corp’s Keystone oil pipeline remained shut on Thursday for investigation from a possible leak on its right-of-way near St. Louis, Missouri, an agency spokesman said.

TransCanada shut the pipeline on Wednesday between Steele City, Nebraska and Patoka, Illinois and sent crews to evaluate the situation, spokesman Terry Cunha said in an email.

The 590,000 barrels-per-day Keystone pipeline is definitely a critical artery taking Canadian crude from northern Alberta to U.S. refineries.

Two pipelines operating nearby the release site might be excavated on Friday to look for the source of the leak, said Darius Kirkwood, a spokesman for your U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration. The company is monitoring the reply to the reported leak, he stated.

Canadian pipelines have been completely congested by reason of expanding production massive, forcing the Alberta provincial government to buy production cuts starting last month. Canadian heavy oil has attracted greater demand following U.S. sanctions against Venezuela’s state oil company.

The discount on Canadian heavy crude compared to U.S. light oil widened to $10.15 per barrel on Thursday morning from $9.40 earlier, in keeping with Net Energy Exchange.

Related Coverage

  • TransCanada to reduce spot rates on Keystone oil pipeline from Canada to Texas

TransCanada shares eased 0.2 percent to C$55.98 in Toronto.

An official considering the Missouri Department of Natural Resources said on Wednesday that this release of oil had stopped and it also planned to have the leak on Thursday.

The Missouri Department of Natural Resources didn’t immediately improve with a get comment on Thursday.