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TransCanada’s Keystone Crude Oil Pipeline Resumes Oil Supply

June 6 (Bloomberg) -- TransCanada Corp. started transporting crude oil through its 591,000 barrel-a-day Keystone pipeline after it was shut because of a leak, the second unplanned closure in a month.

The system resumed oil flows June 5 after the U.S. Pipelines and Hazardous Materials Safety Administration approved the company’s restart plan, Calgary-based TransCanada said in a statement dated yesterday.

The company shut the pipeline on May 29 after a fitting started leaking at a pump station in Doniphan County, Kansas, about 60 miles (97 kilometers) northwest of Kansas City, Missouri. The incident spilled less than 10 barrels of oil, TransCanada said.

“None of the incidents involved pipe in the ground,” Russ Girling, TransCanada’s president, said in the statement. “The integrity of Keystone is sound. The vast majority of that oil was confined to our property and in all cases was cleaned up quickly.”

It was the second time in a month that Keystone has closed because of a leak at a pump station. A May 7 incident resulted in a spill of 500 barrels of crude in North Dakota and shut the line for about one week.

Keystone extends 2,151 miles from Hardisty, Alberta, to U.S. markets at Patoka, Illinois. The system started in February a Phase II extension to Cushing, Oklahoma, the delivery point for crude futures contracts traded in New York.

To contact the reporters on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net; Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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