30 December 2022 | Macroeconomics | Regulation

Keystone pipeline back to service

It is reported that TC Energy managed to restart the Keystone oil pipeline three weeks after its shutdown.

According to the company, Keystone successfully delivers oil to all necessary locations. TC Energy has also assured that risk-mitigation measures are gradually being implemented, including reduced operating pressure.

Keystone is an oil pipeline with a capacity of 622,000 barrels per day. More than three weeks ago, on December 7, there was an oil spill (14,000 barrels), after which the pipeline had to be shut down. As a result, American refineries couldn’t get all Canadian oil supplies. At this point, it is difficult to say exact pipeline’s volumes. It is estimated to be the largest oil spill in the U.S. since 2013.

PHMSA (United States Pipeline and Hazardous Materials Safety Administration) has determined that the pressure in the damaged segment must be reduced by 20%. Until PHMSA approves an increase of the pipeline pressure, Keystone will continue to operate with its current pressure. 

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