Oil leak shuts down portion of Keystone pipeline

Oil leak shuts down portion of Keystone pipeline

TransCanada has indicated that the pipeline from Hardisty, Alberta, to Cushing, Okla., and to Wood River/Patoka, Ill., is expected to remain shut down.

"TransCanada (TSX, NYSE: TRP) crews safely shut down its Keystone pipeline at approximately 6 a.m. CST (5 a.m. MST) after a drop in pressure was detected in its operating system resulting from an oil leak that is under investigation".

Western Canada Select heavy blend crude for December delivery was trading at $14.50 below the West Texas Intermediate benchmark at late afternoon on Thursday, down slightly from $14.20 the day before.

When TransCanada first proposed Keystone I, the company promised a state-of-the-art pipeline which would "meet or exceed world-class safety and environmental standards". The leak was detected along a stretch of the pipeline about 35 miles south of a pumping station in Marshall County, South Dakota.




Crews shut down the pipeline Thursday morning and officials are investigating the cause of the leak. TransCanada estimated that just under 17,000 gallons of oil spilled onto private land during that leak. State regulators have already granted construction permits for the pipeline.

The pipeline transports crude from Alberta, Canada, to refineries in IL and Oklahoma, passing through the eastern Dakotas, Nebraska, Kansas and Missouri. In 2010, the first year it was in use, there were 35 Keystone leaks in the United States and Canada.

President Donald Trump issued a federal permit for the project in March.

The pipeline is a segment of the 2,687-mile TransCanada system that is set to also include the controversial proposed Keystone XL pipeline, which is promised to be the safest pipeline ever built in North America by the company.

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