Leak closes part of Keystone pipeline
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.
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