Enbridge shuts 3rd pipeline, outages near 1 million bpd

Mon Sep 13, 2010 9:15pm EDT
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By Joshua Schneyer

NEW YORK (Reuters) - A small oil spill on Monday forced Enbridge Inc. to close an oil pipeline in New York State, just four days after another leak in Illinois forced it to shut a massive Canadian crude export pipeline.

The Calgary-based pipeline giant said it shut the 70,000 barrel per day (bpd) Line 10, a 91-mile pipe from Westover, Ontario, Canada into New York State.

The latest shutdown came after an oil spill near Buffalo, New York, which appeared tiny and was likely measurable in ounces, not gallons, a New York-based official at the U.S. Environmental Protection Agency told Reuters.

There are now three U.S. stretches of Enbridge pipeline shut due to leaks, idling 930,000 barrels a day (bpd) of the company's capacity. That is equivalent to around half the volume of Canadian oil shipped daily to the United States.

U.S. crude futures rose to their highest close in more than a month on Monday, boosted partly by Enbridge's pipeline outage in Illinois, analysts said.

In post settlement trading crude prices had little reaction to the latest pipeline closure in New York state.

Enbridge said work crews removed on Monday a damaged, 12-foot section of the largest oil pipeline linking Canada to the U.S. Midwest, Line 6A, which spilled crude in Illinois last Thursday.

Enbridge spokeswoman Gina Jordan said the affected stretch of pipe at 6A, along with a ruptured water utility line found nearby, were sent to the National Transportation Safety Board in Washington for investigation. It isn't clear when 6A will be fully repaired, she said.   Continued...