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Oil Price Rally Hits Resistance

Oil Price Rally Hits Resistance

Oil prices are holding their…

Forties Pipeline And Nearby Terminal Disrupted After Oil Leak

Refinery

The Forties pipeline stream—the United Kingdom’s main export vein for its Scottish refineries—saw disrupted flows on Thursday after officials spotted a “seepage” onshore. Another flaring issue at the Kinneil terminal also caused a supply disruption with Forties, a report by S&P Global Platts said on Thursday.

The Swiss firm Ineos just finished buying the pipeline and the Kinneil terminal from British Petroleum just over a month ago. The flow of forties has been cut while the terminal is due to restart shortly, the new operator said.

"Ineos has mobilized a repair and oil spill response team following the identification of a very small amount of oil seepage during a routine inspection of the Forties Pipeline System at Red Moss, near Netherley, Aberdeenshire, at approximately 10:00 hours yesterday,” an official statement read.

The police have closed a local road and cordoned off a 300-meter area for workers to resolve the issue.

"A small number of local residents within this area have been advised to temporarily relocate," it added. "We will work to resolve the issue and monitor the situation. We apologize for any inconvenience caused."

The spill is not severe, with just a few drops leaking from the pipeline every minute. This is no “contamination issue” at this point due to its early detection during scheduled maintenance.

Related: The Drastic Drop Off In U.S. Oil Imports

Regarding the shuttered terminal, the company, currently trying to start shale drilling in the UK, added: "Due to start-up operations there has been flaring at our site in Kinneil. We would like to apologize to local residents for any inconvenience caused and are doing everything we can to minimize any disturbance. The safety of local residents and our staff is our priority and we would like to offer our reassurances that flaring does not pose any risk to the public."

By Zainab Calcuttawala for Oilprice.com

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