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Jefferies sees minimal impact of Keystone pipeline shutdown on Canadian producers

December 12, 2022 8:25 AM
Reuters

Jefferies says TC Energy’s Keystone pipeline shutdown following a spill in Kansas creek to have a relatively minor impact on its coverage.

Assuming shutdown for two weeks (for no other reason than precedent), crude sales in Q4 for Cenovus Energy, Canadian Natural Resources and Suncor Energy will be affected only by an estimated ~2.2%, ~0.2% and ~1.5%, respectively.

Says production shouldn’t be impacted given excess storage regionally.

The ~622,000-barrels-per-day pipeline was shut down after more than 14,000 barrels of crude oil spilled into a creek in Kansas, making it one of the largest crude spills in the United States in nearly a decade.

TRP says it has not yet determined the cause of the leak and did not give a timeline as to when the pipeline will resume operation.

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