November 13, 2019 / 4:03 PM / 25 days ago

TC Energy cuts November volumes on Keystone oil pipeline by about 39% after leak: sources

NEW YORK (Reuters) - TC Energy Corp told a majority of Keystone oil pipeline shippers that November volumes would be cut by nearly 39% after a leak in North Dakota spilled more than 9,000 barrels about two weeks ago, sources familiar with the matter said on Wednesday.

TC Energy did not immediately respond to a request for comment.

The company had earlier told shippers that the outage meant it could not carry out 30% of their normal November shipments on the 590,000 barrel-per-day line from Alberta to U.S. Midwest refineries.

TC Energy has completed repairs and restarted the pipeline at a 20% pressure reduction, a U.S. regulator said on Tuesday.

The line was shut in late October after a drop in pressure was detected. News of the outage initially sent the discount on Canadian heavy crude versus U.S. benchmark West Texas Intermediate (WTI) crude to an 11-month high of about $22 a barrel.

Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, was trading at $19 per barrel below WTI on Tuesday, according to Net Energy Exchange, narrower than Friday’s settle of $21.40 below. The market was closed on Monday for a holiday.

WCS was seen at about $18.25 a barrel below WTI futures early on Wednesday, traders said.

Reporting by Devika Krishna Kumar in New York; Editing by Chizu Nomiyama and Matthew Lewis

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