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NorthAmOil PIPELINES & TRANSPORT NorthAmOil
Keystone pipeline
returns to normal service
NORTH AMERICA THE Keystone pipeline, which carries crude of $900mn for the second quarter of 2022, down
from Canada’s oil sands to the US, resumed nor- from net income of $1.0bn in 2021.
mal service on July 23 following a nearly week- The company said the Keystone system had
long reduction in capacity that had resulted from delivered nearly 610,000 bpd during the second
damage to a third-party electric substation. quarter after bringing around 30% of contracts
The damage was attributed to vandalism to from its 2019 open season into service, effective
a transformer at an East River Electric Power from April 1. Additional volumes are anticipated
Cooperative substation in South Dakota that between now and the end of the year, TC Energy
services Keystone. added.
It resulted in the pipeline’s operator, TC The company also noted that it had finalised
Energy, declaring force majeure on July 18. The contracts for around 580 MW of wind power
company did not specify by how much it had and 240 MW of solar in 2022 to date that would
reduced the pipeline’s capacity while repairs to be used to power portions of the Keystone sys-
the transformer were completed. tem. It added that it expects to finalise additional
A criminal investigation was reported to be contracts later this year.
underway into the damage to the transformer. Elsewhere, TC Energy continues to make
Keystone has a capacity of 590,000 barrels progress on other projects, including the Coastal
per day (bpd) and continued to transport oil fol- GasLink gas pipeline that will serve the LNG
lowing the incident, albeit at a reduced capacity. Canada export terminal. The company said it
Owing to the short-lived nature of the disrup- had reached revised project agreements with
tion, pricing impacts were reported to be limited. LNG Canada for the pipeline, which was now
On July 28, TC Energy reported net income around 70% complete.
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