TransCanada's Keystone Pipeline to Restart Tuesday, Leak Located


NEW YORK, April 8 (Reuters) - After finding a small leak in South Dakota, TransCanada Corp affirmed to shippers on Friday that it expects to restart the 590,000 barrel per day Keystone crude pipeline on Tuesday, according to two sources familiar with the matter.

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, the company said it identified a small leak near its Freeman pump station in Hutchinson County, South Dakota, and was working with engineers in conjunction with the Pipeline and Hazardous Materials Administration on repairs.

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

The spread between front to second month U.S. crude futures widened by as much as 7 cents in the 10 minutes following news of the Tuesday restart.

(Reporting By Catherine Ngai; additional reporting by Liz Hampton; Editing by Chris Reese and Dan Grebler)

Copyright 2017 Thomson Reuters. Click for Restrictions.


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