TransCanad's Keystone pipeline (NYSE: TRP) must operate with a 20% reduction in pressure after it is restarted, says the Pipeline and Hazardous Materials Safety Administration; It is not clear when the restriction could be removed.
The company closed the 590K bbl / day pipeline on November 16 after a leak was detected but restarted today.
"The rupture has characteristics of mechanical damage of the original construction," says the PHMSA. "The preliminary information indicates that the failure may have been caused by mechanical damage to the pipe and lining badociated with a weight installed on the pipeline in 2008."
Separately, TRP has begun hiring owners on the alternate route for its Keystone XL pipeline approved by the state of Nebraska, exploring the more expensive road as it considers a final decision on the expansion project.