NEW YORK/CALGARY, Alberta (Reuters) - TC Energy Corp has declared force majeure on shipments on its 590,000-barrel-per-day (bpd) Keystone oil pipeline after a snow storm hit Manitoba over the weekend, disrupting operations, the company confirmed on Wednesday.
Force majeure is a declaration that unforeseeable circumstances prevented a party from fulfilling a contract.
The storm knocked out power to about 3-4 pump stations in Manitoba, affecting pipeline flows, three sources said.
“Due to the recent storm in Manitoba over the weekend, we did declare force majeure as the province declared a state of emergency. We are currently operating at reduced flows,” TC Energy spokesman Terry Cunha told Reuters in an email.
The Keystone pipeline system is a critical artery taking Canadian crude from northern Alberta to refineries in the U.S. Midwest.
Manitoba was struck by a major storm packing snow and toppling trees over the weekend.
It was not immediately clear the how much of volumes were affected by TC Energy’s declaration of force majeure.
Reporting by Devika Krishna Kumar in New York and Nia Williams in Calgary; Editing by Sandra Maler & Shri Navaratnam
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