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UPDATE 3-Enbridge to reopen key U.S. oil pipeline after leak

Published 2015-08-12, 08:27 p/m
© Reuters.  UPDATE 3-Enbridge to reopen key U.S. oil pipeline after leak
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(Adds comments from company on restart timeline, cleanup)
By Catherine Ngai and Nia Williams
NEW YORK/CALGARY, Aug 12 (Reuters) - Enbridge Inc ENB.TO
expects to reopen a major U.S. Midwest channel for Canadian
crude oil, the 600,000 barrel-per-day Flanagan South pipeline,
also known as Line 59, later on Wednesday, but the company could
not say when a second smaller line would resume shipments after
a small leak.
Enbridge said it did not have a restart date yet for the
adjacent Line 55, the 193,300-bpd Spearhead pipeline.
Excavation of Line 55 has been completed and all of the
released oil and contaminated water has been cleaned up,
Enbridge said.
The two pipelines, which run from Illinois to the storage
hub of Cushing, Oklahoma, were closed on Tuesday after a crude
spill of about one barrel was found in Shelby County, Missouri.
The outages stemmed the flow of some 800,000 barrels per day
of Canadian crude, causing cash prices to dive the furthest
below the West Texas Intermediate benchmark in more than a year.
The market had already fallen following an unrelated outage at
BP Plc's BP.L Whiting refinery in Indiana, a major consumer of
heavy Canada crude.
An alert by energy information company Genscape showed that
in addition to Enbridge's lines, Enterprise Products Partners'
EPD.N 450,000-bpd Seaway Twin pipeline, which connects to the
Canadian pipes at Cushing, was also shut on Tuesday evening.

The U.S. Pipeline and Hazardous Materials Safety
Administration (PHMSA) was investigating the spill, but no order
has been issued yet, a spokesman for the regulator said. A
spokesman for the Missouri Department of Natural Resources
(MDNR) said that as of 9:30 a.m. CDT (1430 GMT) on Wednesday,
"processes are still underway to identify the source" of the
spill.
The MDNR has been at the site of the spill while the PHMSA
is expected to arrive by Wednesday evening, Enbridge said.
Western Canada Select heavy blend crude SHRWCSMc2 traded
as low as $21.75 per barrel below West Texas Intermediate on
Wednesday, the widest differential in a year. On Tuesday, it
settled at $19.80 below WTI, according to Shorcan Energy
brokers.
The closure of the Enbridge pipelines means that crude may
get bottlenecked in Alberta and push the Canadian crude
differential wider, traders say.
The two pipelines are also the main conduits for Canadian
heavy crude to reach the Gulf Coast.
The removal of soil and vegetation affected by the spill is
about 60 percent complete, Enbridge said.
The company said earlier that no injuries had been reported.

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