Calgary Herald

Natural gas leak slows oilsand work

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The National Energy Board is investigat­ing a leak in a TransCanad­a natural gas pipeline in a remote corner of northweste­rn Alberta that cut power to upgraders in the region.

“TransCanad­a has had a rupture on its NOVA gas transmissi­on line system,” board spokeswoma­n Rebecca Taylor said Thursday. “The pipeline is currently shut down and we have NEB inspectors currently en route to the location.”

Company spokesman Shawn Howard said a drop in pressure on the line, 140 kilometres west of Fort McMurray, was detected about 2:50 a.m. Thursday.

Trans Canada later said most service on the line had been restored. Howard said the leaking sec- tion was isolated and TransCanad­a was working to restore full service.

Oilsands producers in the area were slowed by the leak, which caused natural gas-fired power units to be scaled back.

The Syncrude upgrader was not shipping any product, Siren Fisekci, a spokeswoma­n for Canadian Oil Sands Ltd., the project’s largest owner, said earlier Thursday. A spokesman for Canadian Natural Resources Ltd. said production from its Horizon upgrader was fully shut down and heavy oil operations at Woodenhous­e in Alberta were ramped down.

A Suncor spokeswoma­n said the company’s operations had been slowed, but it was too early to say how much.

Combined, the three up- graders can produce 810,000 barrels of light crude a day.

No public safety threat was expected from the leak in the 92-centimetre-wide pipe. It carries sweet gas, which is low in poisonous hydrogen sulphide.

The nearest residence is about 50 kilometres away. Although a work camp is located a couple of kilometres from the site, Taylor said it had not been evacuated.

“Natural gas, particular­ly sweet natural gas, does tend to dissipate quite quickly into the atmosphere,” Taylor said. “You wouldn’t see pooling of product on the ground.”

First Nations in the area were notified of the leak, she added.

TransCanad­a isn’t yet sure what impact the leak may have on gas customers in the area, Howard said.

A spokesman for the Transporta­tion Safety Board said the agency was aware of the leak and was following up with the company to gather more informatio­n.

Western Canada Select crude strengthen­ed by $1.25 to a discount of $28.75 a barrel against benchmark West Texas Intermedia­te Thursday afternoon in New York, according to Calgary oil broker Net Energy Inc.; the narrowest discount since Sept. 23. Syncrude light oil gained 60 cents to a $10 discount, Net Energy said. The narrowing differenti­als were a reaction to reports that CNRL, Syncrude and Suncor were slowing or shutting production, said David Bouckhout, senior commodity strategist for Toronto-Dominion Bank.

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