UPDATE 3-TransCanada to restart Keystone pipeline by Saturday upon PHMSA approval

Fri Apr 8, 2016 6:39pm EDT
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(Updates restart date, details about restart procedures)

NEW YORK, April 8 (Reuters) - TransCanada Corp expects to restart its Keystone crude pipeline by Saturday, upon receiving conditional approval from the Pipeline and Hazardous Materials Safety Administration (PHMSA), the company said in emailed statement on Friday.

TransCanada said its 590,000 barrel per day pipeline should be fully operational by end of day Saturday.

As part of the restart, TransCanada will reduce the pressure on the line to ensure it is functioning properly and meeting conditions laid out by PHMSA, the statement said.

The company also said it will conduct aerial patrols and visual inspections during the restart.

The pipeline, which delivers crude from Hardisty, Alberta, to Cushing, Oklahoma and to Illinois, was shut last weekend after a potential leak in South Dakota.

In an e-mailed statement to media on Friday, the company said it identified a small leak near its Freeman pump station in Hutchinson County, South Dakota.

The company added that it would be working with PHMSA to return the line to service following completion of the repairs.

On Thursday, the Canadian pipeline company said about 400 barrels of oil could have leaked in South Dakota from its pipeline, but was still investigating the source of the spill.   Continued...