According to Reuters article published on November 17, 2022, the weather issues that prompted TC Energy (TRP.TO) to declare force majeure on Keystone oil pipeline deliveries this week have been resolved, the company said on Wednesday.
Calgary-based TC said on Tuesday it was curtailing volumes on the 622,000-barrel-per-day (bpd) pipeline due to severe weather-related impacts. The company did not specify the size or duration of the cut in volumes, but market players estimated it at about 7%.
"The weather-related utility impacts to the Keystone facilities, which resulted in a temporary volume curtailment, have been resolved and the system is currently operating under normal conditions," TC said in a statement on Wednesday evening.
The pipeline was hit by three separate storms between Nov. 4 and Nov. 11 that caused power failures at two pump stations on the U.S. part of the system and at the Patoka, Illinois, delivery station, causing the pipeline to temporarily shut down, one market source said.
Keystone ships crude from Alberta's oil sands to the U.S. Midwest and on to the Gulf Coast, and is a key part of Canada's oil export network.
Western Canadian crude is trading at a discount of about $29 under the U.S. benchmark WTI, due to weak refining demand and months of U.S. strategic reserve releases that have added to competition for heavy Canadian oil.
