A Review of the Nigerian Energy Industry

Enbridge shuts lines after spill


12 August 2015 – Enbridge shut its Line 55 Spearhead pipeline and adjacent Line 59 Flanagan South pipeline, following a crude oil release along Line 55 in Shelby County, Missouri, near Shelbina on Tuesday.

About 16 to 20 gallons of crude spilled, based on initial estimates, into a nearby waterway that had minimal flow and the environmental impact is being determined, the company said, adding that no injuries have been reported due to the incident.

Energy industry intelligence company Genscape earlier reported the shutdown of flow on the company’s Flanagan South pipeline, Reuters reported.

Both the 193,300 barrel per day Spearhead pipeline and the 600,000 bpd Flanagan South pipeline carry oil from Illinois to the storage hub of Cushing, Oklahoma.

These are two of the main conduits for Canadian heavy crude to reach the Gulf Coast. The closure of the lines means crude may get bottlenecked in Alberta, a factor that could potentially push the Canadian crude differential even wider.

Western Canada Select heavy blend crude for September delivery last traded at $19.80 per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy brokers. That compares with a settlement price of $19.40 per barrel below WTI on Monday.

It was not immediately clear how long the pipelines would remain shut.

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