TC Energy ( NYSE: TRP ) said Thursday the December oil spill from the Keystone oil spill was caused by a combination of factors including a weld flaw and bending stress on the pipe.
An analysis ordered by the company said the weld flaw led to a crack that propagated over time as a result of bending stress fatigue, eventually leading to an instantaneous rupture.
TC ( TRP ) said the cause of the bending stress remains under investigation, but the analysis identified no issues with the strength or material properties of the pipe or manufactured fitting.
The pipeline was shut on December 7 after it spilled 12,937 barrels of oil in Kansas; the spill estimate was reduced for 14K barrels previously.
TC Energy ( TRP ) said the estimated cost of the spill is $480M, which could be adjusted as work continues.
TC Energy's ( TR ) overspending is a cause for concern given its implications for the company’s leverage, HFIR Energy Income writes in an analysis posted on Seeking Alpha .
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TC Energy cites stress, weld flaw for December's Keystone oil spill