Fire Breaks Out At Plains All American Crude Tank Near Wichita Falls, Texas



Fire Breaks Out At Plains All American Crude Tank Near Wichita Falls, Texas
A fire broke out Tuesday morning at a Plains All American Pipeline crude storage tank east of Wichita Falls.

Reuters

Aug 28 (Reuters) - A fire broke out on Tuesday morning at a Plains All American Pipeline crude storage tank east of Wichita Falls, Texas, the company said.

The fire was limited to a single storage tank at the Wichita Falls Station, the company said, and none of its workers were missing. Plains did not say if there were injuries, but did say that first responders were on site.

Plains did not specify whether the fire had affected any other operations.

Wichita Falls is a crude injection point in north Texas along Plain's Basin Pipeline, which runs from the Permian Basin in West Texas to the oil storage hub at Cushing, Oklahoma.

News of the pipeline closure contributed to weakness in West Texas Intermediate at Midland <WTC-WTM> crude differentials, traders and brokers said.

WTI Midland traded as much as $18 a barrel below U.S. crude futures early in the session, the biggest discount since late 2012. Prices recovered to last trade at a $16.75 a barrel discount, dealers said. On Monday, WTI at Midland traded near $15 a barrel under Cushing.

Crude was flowing at a rate of nearly 409,000 barrels per day (bpd)when the Basin pipeline was shut after decreased power consumption was observed at about 7:00 a.m. ET (1100 GMT), market intelligence firm Genscape said in a notice.

Pipeline flow averaged about 376,000 bpd this week thus far and the Basin pipeline has a capacity of 450,000 bpd, Genscape said.

"Plains really hasn't said much to the shippers so unless it's going to be shut for a while, I don't think there'll be much market impact," said one trader who buys oil off the pipeline.

Plains did not respond to a request for comment on the Basin pipeline closure.

The Wichita Falls Fire Department did not immediately comment on the status of the fire and the Wichita County Sheriff's office could not be reached for comment.

(Reporting by Liz Hampton in Houston and Devika Krishna Kumar in New York; Editing by Phil Berlowitz and Leslie Adler)



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