Keystone Pipeline restarts operations after North Dakota oil spill
- The Keystone oil pipeline was restarted after a significant oil spill in North Dakota that led to its shutdown.
- South Bow, the operator, confirmed it had completed necessary repairs and inspections, and complied with federal regulations.
- The incident underlines the challenges of managing pipeline operations amidst environmental concerns and market fluctuations.
In the United States, the operator of the Keystone oil pipeline, South Bow, restarted the pipeline system following a significant oil spill that occurred in North Dakota last week. The pipeline was initially shut down due to a spill that influenced the farmland near Fort Ransom, causing an estimated loss of 3,500 barrels of crude oil. With the federal Pipeline and Hazardous Materials Safety Administration approving the restart plan, South Bow has committed to a careful controlled restart process, which includes 24/7 monitoring, compliance with federal regulations, and reduced operating pressures to ensure safety. Before the restart, South Bow completed all repairs, inspections, and testing of the affected area, which involved replacing the failed section of the pipeline. This section will undergo additional tests in a metallurgical lab in Houston to ascertain its integrity, while the repaired pipeline will be subjected to various pressure tests. These prolonged measures aim to ensure that the pipeline operates safely and effectively, preventing further incidents. Monitoring for inclimate weather conditions was also a part of the restart strategy. The company reported that they have informed the Canadian regulators regarding the measures and pressure restrictions applied to the Canadian sections of the pipeline. Furthermore, although the cause of the spill is still unclear, an employee reported a mechanical bang which prompted a swift shutdown of the pipeline within two minutes, preventing more significant damage than what was experienced. Interestingly, the spill's economic impact appears to have been muted by lower oil prices driven by bilateral trade tariff issues. Analysts remarked that, although diesel prices might be affected slightly, gas prices have fallen in almost every state due to the broader trend in oil pricing influenced by these trade concerns. The situation highlights the complex interaction between pipeline operations, environmental safety, and market dynamics, illustrating the challenges faced by infrastructure operators in navigating regulatory requirements and market conditions.