South Bow Watching Weather Before Proceeding With Keystone Pipeline Restart

(Reuters) – Pipeline operator South Bow said Monday it is keeping an eye on inclement weather before proceeding with a planned controlled restart of its Keystone oil pipeline system.

The Calgary, Canada-based company had previously indicated it was targeting Tuesday for full service restoration on the Keystone pipeline, which has been shut down since last Tuesday

following an oil spill near Fort Ransom, North Dakota.

In its latest update Monday, South Bow said it is carefully monitoring weather conditions before proceeding.

The U.S. Pipeline Safety and Hazardous Materials Administration has approved the restart plan, but only under certain conditions laid out in a corrective action order issued by the regulator on Friday.

Under the terms of the order, South Bow must operate at a reduced pressure rate in the U.S. The company has also said it will institute certain pressure restrictions on the Canadian section of Keystone.

Keystone was pumping about 17,844 barrels of oil per hour when a part of the pipeline ruptured Tuesday, spilling an estimated 3,500 barrels onto agricultural land.

The 4,327-km (2,689-mile) Keystone pipeline is a major conduit for crude oil supply from Alberta to U.S. refineries in Illinois, Oklahoma and along the U.S. Gulf Coast.

Reporting by Amanda Stephenson in Calgary; Sherin Elizabeth Varghese in Bengaluru; Editing by Cynthia Osterman