(Adds details on Syncrude outage, market impact)
By Nia Williams
CALGARY, Alberta, April 4 (Reuters) - A production shutdown at the Syncrude oil sands facility in northern Alberta has impacted output from ConocoPhillips' COP.N Surmont thermal plant, helping push heavy Canadian crude prices to their narrowest discount in nearly two years.
The 350,000 barrel-per-day Syncrude project cut production for all of April to zero, according to market sources, following a fire last month that damaged the facility and forced the operator to bring forward planned maintenance. traders in Calgary said ConocoPhillips (NYSE:COP) uses light crude produced by Syncrude to dilute the tarry bitumen produced at the 140,000 barrel per day Surmont plant to make a heavy blend that can flow through pipelines.
"(The) Syncrude outage has had an impact on our output, but we are working with suppliers to understand the timeline as the Syncrude owners work towards a full recovery," ConocoPhillips Canada spokeswoman Michelle McCullagh said.
She did not specify what volume of crude had been impacted.
Syncrude is a joint venture majority-owned by Suncor Energy Inc SU.TO , while Imperial Oil Ltd IMO.TO provides operational, technical and business management support.
Prices for heavy and synthetic Canadian crude have surged on tight supply stemming from the Syncrude outage.
Western Canada Select heavy blend crude for May delivery last traded at $10.20 per day below the West Texas Intermediate benchmark, according to Shorcan Energy Brokers, the smallest discount since May 2015.
Light synthetic crude from the oil sands for May delivery last traded at $5.30 per barrel over WTI, having settled at $4.85 per barrel over the benchmark on Monday. (Editing by Lisa Shumaker and Bill Rigby)