A day after receiving approval from U.S. regulators, TransCanada restarted its Keystone pipeline, a week after the pipeline was closed due to a leak at a pumping station in Kansas. While the company declined to give a specific time line on when shipments would resume, it said new shipments could be ''imminent.''
With a capacity of 591,000 barrels per day, Keystone moves oil from the Canadian province of Alberta to the U.S. storage facility in Cushing, Oklahoma. Cushing is where New York Mercantile Exchange-traded oil futures are priced. Leaks led to closures for Keystone twice last month.
The U.S. Pipeline and Hazardous Materials Safety Administration issued a corrective action order on Friday, demanding the company agree to a series of immediate and long-term measures following the outage on May 29, according to Reuters. TransCanada (TRP) must now conduct reviews of the system to prevent similar leaks from occurring in the future.
The U.S. State Department recently approved a controversial expansion for Keystone, worth up to $7 billion, that could see the pipeline deliver Canadian oil as far south as the Gulf Coast, Reuters reported. Canada is the largest exporter of oil to the U.S.