TC Energy Says Keystone Pipeline System Will Reduce Volumes
Nov 15 (Reuters) – Canada’s TC Energy (TRP.TO) said on Tuesday its 622,000 barrel-per-day Keystone oil pipeline will reduce volumes due to a series of recent severe weather-related impacts on facilities in the system.
The Calgary-based company said it notified customers of the force majeure event on Monday. TC did not share any details on the size or duration of the reduction, citing confidential customer information.
“The notices informed customers that beginning November 15, the Keystone system will be required to reduce volumes due to system slowdown during the force majeure event,” TC said in a statement.
Two market sources said volumes were reduced by 7%. One of the sources said Canadian heavy crude prices sold off on Monday before recovering on Tuesday.
A barrel of Western Canada Select heavy crude for December delivery settled $28.60 a barrel below U.S. crude futures, according to NE2 Inc, after trading at $28.85 a barrel. the day before.
Keystone ships Canadian crude from Alberta to the US Midwest and up to the Gulf Coast, and is a key part of Canada’s oil export network.
TC announced in October that it would temporarily increase the capacity of its Keystone pipeline for a few months starting in November to test operations on the system.
Reporting by Swati Verma in Bangalore; Editing by Mark Porter, Jonathan Oatis and Deepa Babington
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