South Bow, operator of the Keystone pipeline, aims to resume Keystone Pipeline operations by Tuesday, April 15, following a leak near Fort Ransom, North Dakota, that spilled an estimated 3,500 barrels of crude oil last week.
The 2,687-mile pipeline, which moves over 600,000 barrels per day from Alberta, Canada, to U.S. refineries in Illinois, Oklahoma, and Texas, was shut down after the incident. The affected segment has been isolated, and cleanup efforts have recovered significant volumes of oil.
The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Corrective Action Order, mandating actions like pressure reductions, metallurgical testing, and a root cause analysis before restart approval.
The pipeline operates under a special permit allowing higher pressures, now under review after a 2022 Kansas spill prompted similar scrutiny.
A restart could stabilize supply chains, easing upward pressure on oil prices, especially for Midwest refiners reliant on Canadian crude.
However, any delays in PHMSA approval or new permit restrictions could prolong disruptions, tightening regional oil markets and lifting prices.