TransCanada to restart Keystone pipeline: Update

OREANDA-NEWS. April 11, 2016. TransCanada will restart its 590,000 b/d Keystone crude pipeline from Hardisty, Alberta, to Cushing, Oklahoma, and Wood River, Illinois, tomorrow, earlier than expected.

The line was shut beginning 2 April because of a small leak about four miles from the Freeman pump station in Hutchinson county, South Dakota, which spilled an estimated 400 bl.

The US Pipeline and Hazardous Materials Safety Administration (PHMSA) has given TransCanada conditional approval to resume delivering crude on the system tomorrow following completion of repairs, the company said.

TransCanada will first operate the pipeline at a reduced pressure to ensure it is functioning properly and meeting the conditions set out by PHMSA. The company will conduct aerial patrols and visual inspections at the site during the restart.

"We expect to be at full operation by end of day tomorrow," TransCanada said.

Earlier in the day, TransCanada said that engineers were working with PHMSA to determine an appropriate repair method.

Workers excavated soil to expose more than 275ft of pipe to find the leak. Clean up and land restoration has already started and will continue over the coming days.

TransCanada has curtailed the line by 35pc for the rest of the month, according to a mid-month curtailment notice sent to shippers earlier this week.

TransCanada began shutting down the pipeline at 1:30pm ET on 2 April after receiving a report of a possible leak.