South Bow Corp.’s Keystone oil pipeline has been shut down after a spill in southeast North Dakota, affecting 15% of Canada’s crude exports to the US. The spill was discovered after a pump station worker heard a loud noise and a yet-unknown volume of oil was found in a nearby field. The timeline for restarting the pipeline is uncertain as workers need to excavate and repair the source of the leak. Federal investigators have been dispatched to the scene.
This is not the first incident for the Keystone pipeline, which has experienced several accidents since its construction over a decade ago. The recent spill has caused US crude futures’ prompt spread to surge, tightening supplies in Cushing, Oklahoma. The company’s shares also took a hit, sliding as much as 6.2% in Toronto.
The pipeline’s integrity is a major concern for investors, with RBC Capital Markets advising a cautious approach. Despite the challenges, South Bow Corp. is working to address the spill and minimize the impact on operations.
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