Oil
TRP

Keystone oil pipeline issues resolved after storms cause volumes to be cut -source

By Nia Williams

Nov 16 (Reuters) - The weather issues that prompted TC Energy TRP.TO to declare force majeure on Keystone oil pipeline deliveries this week have been resolved but the company will reduce injections for the rest of November, according to a market source.

Calgary-based TC said on Tuesday it was curtailing volumes on the 622,000 barrel-per-day (bpd) pipeline after the line was hit by three separate storms between Nov. 4 and Nov. 11. The company did not specific the size or duration of the cut in volumes, but market players estimated it at about 7%.

The storms caused power failures at two pump stations on the U.S. part of the system and at the Patoka, Illinois, delivery station, causing the pipeline to temporarily shut down, the source said.

Keystone ships crude from Alberta's oil sands to the U.S. Midwest and on to the Gulf Coast, and is a key part of Canada's oil export network.

The events have been resolved and the pipeline is operational, but the cumulative impacts prompted TC to reduce November injections, he added.

TC did not respond to a request for comment.

Western Canadian crude is trading at a discount of about $29 under the U.S. benchmark WTI, due to weak refining demand and months of U.S. strategic reserve releases that have added to competition for heavy Canadian oil.

(Reporting by Nia Williams; Editing by David Gregorio)

((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters Messaging: nia.williams.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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