Husky shuts pipeline on Saskatchewan Gathering System after spill

Thu Jul 21, 2016 10:45pm EDT
 
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(Reuters) - Husky Energy said on Thursday it shut and isolated a pipeline on its Saskatchewan Gathering System, after roughly 200,000 to 250,000 liters of heavy oil and diluent spilled from the line, running into the North Saskatchewan River.

Husky said it had deployed spill response equipment and crews to begin clean-up after a sheen was observed on the river some 30 kilometers (18.6 miles) east of Lloydminster, a city that straddles the border between Saskatchewan and Alberta.

The Saskatchewan Gathering System runs from Husky's heavy oil operations east of Lloydminster to the company's facilities in that city, where the oil is upgraded, used in asphalt or shipped on to the oilsands hub of Hardisty, Alberta.

Husky did not provide details on any potential impact the spill and shutdown could have on oil shipments.

The Calgary-based company said it was working with provincial authorities and regulators on the response, and had contacted all impacted municipalities.

The North Saskatchewan River is a major tributary to the Saskatchewan River, which flows east across Saskatchewan and Manitoba into Lake Winnipeg.

The Saskatchewan government said it had notified water plant operators downstream of the incident, in order to avoid any contamination of drinking water.

(Reporting by Julie Gordon in Vancouver, Catherine Ngai in Houston, and Swati Verma and Nithin Prasad in Bengaluru; Editing by Bernard Orr and Bill Rigby)