Canada-US Pipelines Restart After Weather Disruptions

By Devika Krishna Kumar
Wednesday, December 5, 2018

Two major pipelines carrying oil from Canada to the United States resumed operations on Wednesday after brief disruptions due to power outages from severe weather in Saskatchewan, Canada, a day earlier.

A number of lines on Enbridge Inc's Mainline system, which carries about 1.2 million barrels per day of crude and other liquids, and TransCanada Corp's 590,000 bpd Keystone crude pipeline were hit by power outages on Tuesday in the western Canadian province.

TransCanada's Keystone pipeline was operational on Wednesday after it experienced a brief outage due to power disruptions, the company said in an emailed statement on Wednesday.

Enbridge said its mainline system, which includes Lines 1, 2a, 3, 4 and 67, as well as Line 13, are back in service. The province's primary utility SaskPower restored electricity to pipeline operations there, but Enbridge said intermittent service outages may still occur.

Western Canadian Select (WCS) heavy oil prices strengthened on news of the restart, dealers said, trading at $23.50 a barrel below West Texas Intermediate benchmark prices. Prices traded at a discount of about $24.50 on Tuesday.

Both pipeline systems originate in Alberta, where most of Canada's oil is produced.

The outages came just days after the Alberta government announced forced cuts in crude production. Western Canadian oil producers have struggled to export crude because of full pipelines as production has surged to a record of more than 4.6 million bpd in 2018.


(Reporting by Devika Krishna Kumar and Julie Gordon; Editing by Marguerita Choy, Steve Orlofsky and Richard Chang)

Categories: Pipelines Oil North America

Related Stories

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Sapura Energy Rebrands to Vantris Energy

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

Sapura Scoops Over $118M for Chevron, PTTEP Subsea Ops off Thailand

EnQuest Picks Up Offshore Oil and Gas Block in Brunei

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Baker Hughes, Petronas Team Up for Asia-Pacific Energy Resilience

Current News

Shipbuilder Delivers Fast Crew Boat Pair to Aesen

Norwegian Oil Investment Will Peak in '25

Saipem Marks First Steel Cut for Tangguh UCC Project at Karimun Yard

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com