* Keystone to remain closed until weekend
* Company expects to make all May deliveries
* Line accounts for about 20 pct of US imports from Canada
(Adds link to factbox)
By Scott Haggett
CALGARY, Alberta, May 10 TransCanada Corp's
(TRP.TO) 591,000 barrel per day Keystone pipeline will likely
remain shut until the weekend after a 500-barrel oil spill at a
North Dakota pumping station on Saturday, a spokesman said on
The pipeline, which takes oil from Alberta to Patoka and
Wood River, Illinois, and the key oil storage hub of Cushing,
Oklahoma, won't reopen as early as the company first expected,
TransCanada's Terry Cunha said in an email.
TransCanada is inspecting some fittings at all its pumping
stations after one failed at the Ludden station, about 65 km
(40 miles) southwest of Milnor, North Dakota, spilling oil
within the facility.
The line was carrying about 400,000 bpd at the time of the
shutdown, about 20 percent of Canada's daily oil exports to the
United States. TransCanada says it still expects to make all
its scheduled deliveries this month.
"There is no market impact," Cunha said.
For a factbox of recent pipeline ruptures click on
The shutdown could lower storage levels at the Cushing
hub, the pricing point for the New York Mercantile Exchange
benchmark West Texas Intermediate crude contract, and could
support oil prices, which have climbed more than $6 a barrel
over the past two days to $103.88 per barrel.
However, closing the line has had little impact on the
price of Western Canada Select, a widely traded heavy oil
blend. It is selling at a discount of about $17.35 a barrel to
WTI prices from $16.85 under the benchmark last week.
One trader said the effect on prices was muted because
there is enough spare capacity on the line to quickly make up
for any delayed shipments.
The Keystone shutdown is the latest in a spate of pipeline
spills. Plains All American Pipeline LP's (PAA.N) Rainbow
pipeline ruptured in northern Alberta on April 29, spilling
28,000 barrels of crude and shutting the 187,000 bpd line.
As well, Kinder Morgan Energy Partners's KMP.N 300,000
bpd Trans Mountain oil pipeline was shut for five days from
April 22 after a small leak was spotted on the line's
right-of-way 150 km west of Edmonton, Alberta.
(Additional reporting by Jeffrey Jones; editing by Janet