Canada has shut the Keystone pipeline which connects Alberta to the US after 14,000 barrels of crude oil spilled into a creek in Kansas.
The pipeline’s closure was reported by the pipeline’s operator, TC Energy, on Thursday.
The Canadian corporation reported that when alarms went off indicating a system pressure drop on Wednesday it began an energy cutoff and reaction.
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The cause of the leak is not known and not clear when the pipeline is expected to come back online.
The affected segment of the Keystone pipeline system “has been isolated” and remains shut, the company said.
The leak at Keystone is the largest oil leak since a Tesoro Corp.
It’s the Keystone’s seventh spill since starting operations in June 2010, according to PHMSA data.
The PHMSA says the leak is being investigated and has ordered TC Energy to keep the pipeline shut until it authorizes a restart.
Leaks from Keystone are problematic because the pipeline carries tar sands and spills containing this substance are harder to clean up.
Fears about such spills have already thwarted the Keystone XL oil pipeline extension projection, which President Joe Biden canceled in January 2021, even though the construction had already begun.
Keystone‘s shutdown sent US West Texas Intermediate futures soaring over 4% to top $75 a barrel on Thursday, but the strong gains did not hold — US crude futures were at $71.92 at 2.26 a.m. ET on Friday.
TC energy says its primary focus right now is the health and safety of onsite staff and personnel, the surrounding community, and mitigating risk to the environment.
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