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Keystone shutdown causes disruption at key refinery

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World Pipelines,

The sudden closure of the Keystone oil pipeline from Canada has forced Phillips 66 to shut several units at its Illinois refinery.

TransCanada Corp said it had shut its 590 000 bpd Keystone pipeline system, which carries light and heavy crude from Alberta to Cushing, Oklahoma, and into Texas, on Saturday due to a potential leak in South Dakota. It told shippers the line may not resume operating until Friday.

Company work crews are still investigating the leak, along with PHMSA.

Phillips' Wood River, Illinois, plant has shut down a 64 000 bpd sour crude unit and a 16 000 bpd coker due to the disruption in supply.

A day ago it had cut production rates at the 306 000 bpd refinery, although it has since restored full operations at other units.

The company also advanced some planned work on the units during the shutdown, which could extend beyond the restart of the pipeline.

The plant imported nearly 200 000 bpd of heavy sour Canadian crude last year, according to US government data.

Phillips 66 confirmed that it cut rates at the refinery but stressed: "At this time we are still meeting product supply commitments to our customers in the region.”

Edited from various sources by Elizabeth Corner

Sources: ReutersSTL Today

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