South Dakota Pipeline Leak Hits TransCanada Corp. Shares, Canada Crude Price Plunges

South Dakota Pipeline

Canadian heavy crude prices and TransCanada Corp. (TSXV:$TRP) shares slid on Friday, the day after Keystone pipeline spilled 5,000 barrels of oil in South Dakota as officials Nebraska mulled whether to approve another pipeline proposed by the company.

While the possibility of whether exports can resume in Keystone remains unclear, the leak gave ammunition to environmental groups and other U.S. opponents of another pipeline proposed by TransCanada, the long-delayed Keystone XL.

Calgary-based TransCanada stated on Thursday that it had contained the leak in the town of Amherst, South Dakota, and was investigating the cause. Further, the company elaborated that the pipeline will be shut until it gets approval to restart from the U.S. Pipeline and Hazardous Materials Safety Administration in Nebraska, Keystone XL opponents seized on the spill as an example of its environmental risks.

The Nebraska Public Service Commision is scheduled to announce a decision on Monday whether Keystone XL is in the best interests of the state. Its decision focuses narrowly on whether the pipeline is in the public interest, not environmental questions.

TransCanada shares fell 2% on the Toronto Stock Exchange to C$61.87 at midday on Friday.

The discount on Canadian heavy crude to the U.S. crude widened as traders awaited news on how long Keystone would be shut down.

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