TransCanada’s Keystone oil pipeline resumes flow

The Keystone oil pipeline, which carries around 590 000 bpd of crude from Canada to facilities in the Midwest, has resumed its oil flow.

Earlier, the 2100 mile pipeline had been shut down by operator TransCanada after tests showed possible safety issues on a section between Missouri and Illinois. Company spokesman Shawn Howard said in an emailed statement that leaks were not the issue, and that "the integrity of the pipeline system is sound."

To ensure additional testing can be completed, the system will be operated at a slightly reduced pressure for the first 24 hours.

"Once the pipeline system is operating at full pressure, we will be curtailing October volumes and will return to contractual delivery levels in November," Howard said. "We will be having direct discussions with our customers regarding the impact this will have on their deliveries to us."

TransCanada had planned to restart the pipeline earlier, but poor weather conditions complicated efforts to move equipment into the area so workers could excavate the section of pipeline for inspection.

"It was critical we moved forward safely," Howard said commenting the logistical issues.

With crude supplies plentiful across the US, analysts have noted that the temporary closure is not expected to affect refinery production or retail gas prices.

The news comes amid delays over TransCanada's plans to build the US$ 7 billion Keystone XL pipeline that would transport oilsands crude from Canada to the Gulf Coast refineries.

The proposed pipeline has seen much opposition, concerned that the new pipeline would be carrying heavy, acidic crude oil that could more easily corrode a metal pipe and lead to a spill. TransCanada, however, is reassuring that this pipeline would be the safest ever built.

Edited from various sources by Cecilia Rehn.

Read the article online at: https://www.worldpipelines.com/business-news/23102012/keystone_oil_pipeline_between_canada_and_the_us_resumes_its_flow/