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Storm in Canada disrupts crude oil pipelines

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Staff Writer | October 19, 2017
Canada pipeline
Weather   Alberta and Saskatchewan

Two crude oil pipelines in western Canada were shut down on Wednesday after stormy weather on Tuesday night caused power outages in parts of Alberta and Saskatchewan.

TransCanada's 590,000 barrel-per-day Keystone pipeline, which delivers crude from Hardisty, Alberta, to Steele City, Nebraska, was shut down for a few hours and is now back to operating as normal, spokesman Terry Cunha said.

Market sources said the Keystone shut down was due to a power outage caused by the weather.

Inter Pipeline Ltd's 82,000 bpd Mid Saskatchewan crude oil pipeline, which delivers light and heavy crude into Kerrobert, Saskatchewan, lost power following the storm.

"We do not know the length of this particular outage, it is based on the power outage and the weather over the last 24 hours," Inter Pipeline spokeswoman Breanne Oliver said.

Fierce windstorms across much of Alberta and Saskatchewan on Tuesday caused widespread power outages and fanned fast-moving prairie fires in some areas.

One Calgary-based trader said the outages were expected to be short-lived and there was no sign of crude deliveries getting backed up.


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