Commodities

Canada's Trans Mountain oil pipeline to restart on Sunday

2 minute read

A pipe yard servicing government-owned oil pipeline operator Trans Mountain is seen in Kamloops, British Columbia, Canada June 7, 2021. REUTERS/Jennifer Gauthier

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Dec 4 (Reuters) - Canada's Trans Mountain pipeline will restart operations on Sunday, weeks after shutting down during a record-breaking rainstorm in British Columbia that washed out road and railways, Trans Mountain Corp (TMC.UL) said in a statement on Saturday.

The pipeline, owned by the Canadian government and which was closed as a precaution, ships 300,000 barrels a day of crude oil and refined products from Alberta to the Pacific Coast.

Trans Mountain said that throughout the shutdown, the pipeline was safe and there was "no indication of any product release or serious damage to the pipe."

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The pipeline will restart on Sunday during daylight hours, after final repair work and assessments.

The operator said on Monday it was "still days away" from restarting the key oil pipeline at a reduced capacity as heavy rains continued to impede restoration efforts. read more

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.

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.

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Reporting by Juby Babu and Rithika Krishna in Bengaluru and Nia Williams in Calgary; editing by Jonathan Oatis

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