WTI prices got a serious boost this week after TransCanada shut down the Keystone pipeline following a leak of 5,000 barrels in South Dakota. The leak could not have come at a worse time for the Canadian pipeline builder and operator: just three days after the leak Nebraska’s regulatory authorities removed the last hurdle standing in front of Keystone XL.
The regulators, however, suggested an alternate route for the section of the pipeline that passes through Nebraska, an alternate route could give opponents one more cause to challenge the project in court. Already a group of environmental organizations announced victory when a federal judge gave the go-ahead to a lawsuit against the presidential administration for approving Keystone XL. The suit alleges the approval was based on inadequate environmental impact data.
Meanwhile, South Dakota regulators warned they might reconsider their own approval of Keystone XL if an investigation into last week’s leak discovers that TransCanada had violated the conditions the state set in exchange for approving the first Keystone project.
The company is still working to fix the section of the 590,000-bpd pipeline that leaked and has warned that as a result its shipments from Canada will be 85% lower until the end of the month. WTI is at a two-year high.
Deals, Mergers & Acquisitions
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