Canada's Trans Mountain oil pipeline shut down due to British Columbia storms (updated)

Canada Energy Partners

15/11/2021 20:20

(Adds analysts, background on pipeline)
    By David Ljunggren and Nia Williams
    OTTAWA/CALGARY, Alberta, Nov 15 (Reuters) - Canada's Trans
Mountain oil pipeline has been shut down temporarily because of
rainstorms pounding parts of the province of British Columbia,
the operating company said in a statement on Monday.
    The Canadian government-owned pipeline ships 300,000 barrels
a day of crude and refined products from Alberta to the Pacific
Coast. Work on a major expansion project on the pipeline has
also been halted, Trans Mountain Corp said. 
    "As a precaution, Trans Mountain has shut down the Trans
Mountain Pipeline due to widespread flooding and debris flows in
the area around Hope, BC," a company spokeswoman said in an
email. She did not give any information on when the pipeline is
expected to restart.    
    Heavy rains and flooding are causing widespread disruption
across Canada's westernmost province. Landslides have trapped
people in vehicles on highways and the entire town of Merritt,
with a population of 7,000 people, has been ordered to evacuate.
 urn:newsml:reuters.com:*:nL1N2S620B
    Trans Mountain is a key oil export route and nearly
two-thirds of its volumes in the first half of 2021 were light
oil deliveries heading to U.S. refineries, said IHS Market Vice
President Kevin Birn, citing Canada Energy Regulator data.
    Refiners in Washington state – including Phillips 66  PSX.N 
and BP  BP.L  – have other options to acquire oil, as they have
access to the Pacific Ocean.
    "The disruption's duration is the key metric for scale of
impact," Birn said.
    Western Canada Select crude for December delivery, the
benchmark Canadian heavy crude grade, showed limited reaction to
the pipeline shutdown. WCS last traded at $19.15 per barrel
below U.S. crude futures, according to NE2 Canada Inc, 70 cents
narrower than Friday's settlement price.
    

 (Reporiting by David Ljunggren and Nia Williams; Additional
reporting by Rod Nickel in Winnipeg; Editing by Aurora Ellis and
Peter Cooney)
 ((david.ljunggren@tr.com; +1 647 480 7891;))