Repairs and cleanup of an oil leak on the Keystone Pipeline in Kansas late last year are projected to cost at least $480 million, sponsor TC Energy Corp. said.

TC Energy

Following a 29-day interruption to repair the leak in Kansas, oil flows resumed at the end of 2022 to transport up to 600,000 b/d of Canadian oil exports into the United States.

“This estimate may be adjusted as we continue to progress work on site,” the Calgary-based pipeline giant said. We are working with our insurers to maximize cost recoveries.”

A welding fault in the pipe caused the spill, TC noted. The size of the leak was reduced to 12,937 bbl of oil from an initial estimate of 14,000 bbl.

Investigation continues into the source of the pipeline leak, the company noted. The weak spot in a curve in the...