UPDATE 4-TransCanada gas deliveries resume after oil sands output disrupted

Thu Oct 17, 2013 7:28pm EDT
 
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* Gas line rupture cuts supply to oil sands projects

* Suncor, Syncrude, Canadian Natural, Imperial cut production

* Late in day, TransCanada says gas supplies resuming

* Canadian oil prices strengthen

* Other oil sands operators say no impact from rupture

By Scott Haggett and Nia Williams

CALGARY, Alberta, Oct 17 (Reuters) - TransCanada Corp resumed gas deliveries to most industrial customers late on Thursday after an earlier pipeline rupture in northern Alberta left some Canadian oil producers scrambling to scale back production.

The rupture reduced natural gas supplies for most of the day after a 1.6 billion cubic foot per day North Central Corridor pipeline ruptured in a remote area about 140 kilometers (90 miles) west of Fort McMurray, Alberta.

The outage, which affected producers of more than half of the oil sands region's output, cut supplies of fuel used to produce bitumen and for the upgraders that convert it into refinery-ready synthetic crude. That forced at least four major oil sands companies to slow or halt output at facilities that can produce more than 800,000 barrels per day of oil. Canada cash crude prices spiked on the news.   Continued...