2023-03-08 12:56:23 ET
The U.S. pipeline regulator said late Tuesday it will require TC Energy ( NYSE: TRP ) to reduce operating pressure on more than 1,000 additional miles of the Keystone pipeline system, following the December spill of 13K barrels of oil in Kansas.
TC Energy's ( TRP ) "operating, maintenance, and/or integrity management programs may be inadequate to address the repetitious pattern of failures related to the original design, manufacture, and construction of Keystone pipeline," the U.S. Pipeline and Hazardous Materials Safety Administration said in its order.
The amended corrective action order requires TC Energy ( TRP ) to keep the operating pressure on the affected pipeline segment under the previously agreed upon 923 lbs per square gauge limit.
The PHMSA also said operating pressure on the rest of the pipeline extension from Steele City, Nebraska to the Cushing storage hub in Oklahoma and on the entire 1,025-mile main line from the Canadian border to refineries in Illinois, must not exceed 72% of the specified minimum yield strength.
The pressure reductions will lower crude flow rates on the entire Keystone system , which could affect price differentials between U.S. and Canadian crude, Credit Suisse analyst Andrew Kuske said.
TC Energy ( TRP ) has said the Keystone oil spill may have been caused by a combination of factors including a weld flaw and bending stress on the pipe .
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TC Energy must cut pressure on Keystone pipeline system, U.S. regulator says