Leak closes part of Key­stone pipe­line

The Washington Post - - ECONOMY & BUSINESS -

TransCanada said Mon­day that a stretch of its Key­stone crude pipe­line from Ne­braska to Illi­nois re­mained shut af­ter a leak was dis­cov­ered in the St. Louis area last week.

The cause and source of the spill have not been de­ter­mined, and there is no es­ti­mated time­line for the pipe­line’s restart, TransCanada spokesman Terry Cunha said in an email. The clo­sure af­fects the line that runs from Steele City, Neb., to Pa­toka, Ill.

The Key­stone pipe­line sys­tem, which can carry 590,000 bar­rels per day, is a crit­i­cal artery tak­ing Cana­dian crude from north­ern Al­berta to re­finer­ies in the Midwest.

TransCanada told Key­stone ship­pers last week that it was declar­ing force ma­jeure on ship­ments af­fected by the shut­down, ac­cord­ing to a no­tice seen by Reuters. Force ma­jeure is a dec­la­ra­tion that un­fore­see­able cir­cum­stances pre­vented a party from ful­fill­ing a con­tract.

A surge in crude pro­duc­tion in Al­berta has over­whelmed ex­ist­ing pipe­line in­fras­truc­ture, forc­ing the Al­berta provin­cial gov­ern­ment to order pro­duc­tion cuts start­ing last month.

Western Cana­dian heavy crude has at­tracted greater de­mand in re­cent days be­cause of U.S. sanc­tions against Venezuela’s state oil com­pany.

The to­tal amount of oil spilled has not been de­ter­mined. Con­trac­tors were as­sess­ing the ex­posed pipe­line Mon­day. — Reuters ALSO IN BUSI­NESS U.S. Steel says it is restart­ing con­struc­tion on an idled man­u­fac­tur­ing fa­cil­ity in Alabama, and it’s giv­ing some of the credit to Pres­i­dent Trump’s trade poli­cies. The Pitts­burgh­based com­pany says the pres­i­dent’s “strong trade ac­tions” are partly re­spon­si­ble for the re­sump­tion of work on an ad­vanced plant near Birm­ing­ham. The ad­min­is­tra­tion’s tar­iffs have raised prices on im­ported steel and alu­minum. U.S. Steel also cited im­prov­ing mar­ket con­di­tions, union sup­port and gov­ern­ment in­cen­tives. The com­pa­nies that run the English Chan­nel tun­nel are su­ing the Bri­tish gov­ern­ment over its award of ferry con­tracts to han­dle freight ship­ments in the event of a no-deal Brexit. The law­suit comes just days af­ter one of those con­tracts, with a startup com­pany that doesn’t own any ships, fell through. Chan­nel Tun­nel Group and FranceManche ac­cuse the gov­ern­ment of a “se­cre­tive and flawed pro­cure­ment ex­er­cise.”

Bar­neys New York, the closely held chain of up­scale spe­cialty stores, is part­ner­ing with the Los An­ge­les mar­i­juana brand Be­boe to open what it calls a “lux­ury cannabis and well­ness con­cept shop” on the fifth floor of the Bar­neys store in Bev­erly Hills. Dubbed “the High End,” the shop will sell mar­i­juana ac­ces­sories, in­clud­ing rolling pa­pers, pipes, ash­trays, bongs and stor­age boxes. COM­ING TO­DAY 10 a.m.: La­bor Depart­ment re­leases De­cem­ber job open­ings fig­ures and la­bor turnover sur­vey. 2 p.m.: Trea­sury re­leases fed­eral bud­get for Jan­uary.

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