Keystone oil pipeline not affected by Alberta floods-TransCanada

Tue Jun 25, 2013 12:49pm EDT
 
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June 25 (Reuters) - TransCanada Corp said on Tuesday that its Keystone crude oil pipeline system is operating normally despite record flooding in Alberta where the line originates and a report saying flows on the line had slowed.

Earlier on Tuesday, pipeline and refinery monitor Genscape said flows on Keystone 1 had slowed to around 357,000 barrels per day (bpd) from 580,000 bpd.

"The Keystone operational system remains available to transport full capacity as determined by customers," TransCanada spokesman Shawn Howard said in an email.

"Throughputs normally vary throughout the month as determined by customers business plans, we are observing normal and typical variation," Howard added.

Record flooding in Alberta over the weekend led to Enbridge Inc shutting about 1 million bpd of pipeline capacity as a precaution after a smaller line spilled about 750 barrels of synthetic oil in the north of the province on Saturday.

The Enbridge lines help supply the Hardisty, Alberta oil hub with crude produced at the oil sands fields in the north of the province. Much of the oil stored in Hardisty is then exported to the United States.

Canada is the U.S.' biggest supplier of energy.

The Keystone pipeline system flows from Hardisty to Steele City, Nebraska before branching off to either Patoka, Illinois, or Cushing, Oklahoma - the delivery point of the U.S. crude oil contract.

U.S. crude oil's discount to international marker Brent narrowed on Tuesday to its lowest level since November 2011, touching $5.60 a barrel, partly as a result of concerns about potential disruptions to Canadian crude supplies.