UPDATE 1-Enbridge Line 6A pipeline stays shut; oil climbs

* Shutdown could cut flow to Cushing, JP Morgan says

* U.S. October crude above $78/barrel due to shutdown
(Updates with crude up, analyst comment)

By Erwin Seba

HOUSTON, Sept 13 (BestGrowthStock) – Enbridge’s (ENB.TO: ) Line 6A
pipeline carrying Canadian crude oil to U.S. refineries and a
crucial oil hub in Cushing, Oklahoma, remained shut on Monday,
sending crude oil prices to their highest levels in a month.

No date has been set for restarting the pipeline, which was
shut Thursday as oil was bubbling up through the soil in a
industrial section of Romeoville, Illinois, about 30 miles (49
kilometers) from downtown Chicago.

In early trade on the New York Mercantile Exchange, U.S.
crude oil for October delivery (CLc1: ) climbed $1.59 to $78.04,
its highest level since Aug. 11, due in part to the Line 6A
shutdown. Prices later fell back, with October crude trading up
$1.30 at $77.75 a barrel.

“The petroleum markets were trading higher in early
going Monday, with support coming from a stronger equity
market, a weaker U.S. dollar, and ongoing concerns regarding
the Enbridge pipeline outage as there were still no estimates
on how long the disruption of Midwest crude oil deliveries will
last,” Citigroup analyst Tim Evans said in a research note.

Workers were preparing to cut out the problem section of
the pipeline and replace it.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Factbox on pipelines feeding the Midwest [ID:nN10275799] Factbox on refineries [ID:nN1037716] History of Enbridge's pipeline spills [ID:nN10254087] Enbridge pipeline configuration: http://link.reuters.com/qyz52p ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

The suspension of crude shipments on the 6A line has the
potential to reduce flows to Cushing, the delivery point for
NYMEX crude, by around 300,000 barrels per day, according to JP
Morgan oil analysts headed by Lawrence Eagles, taking into
account the potential to pump crude via alternative routes.

Increased environmental scrutiny of the pipeline and its
repairs could also delay the restart of Line 6A’s flow, JP
Morgan said.

“Such leaks are not unusual, and in normal circumstances we
would expect the line to be up and running in a matter of days,
but a rapid restart of the most recently shuttered pipeline is
unlikely because of a ‘lengthy’ environmental review process,”
JP Morgan said.

Enbridge was scrambling to find different ways to deliver
the crude to at least the U.S. midcontinent refineries that
rely on Line 6A for part of their crude oil supply.

“Enbridge’s schedulers are working with shippers to divert
crude oil volumes to other available pipelines and storage
facilities,” the company said early Monday.

As many as 450 workers were expected to be working on the
site sometime Monday, according to the U.S Environmental
Protection Agency, which is overseeing the clean-up.

Enbridge must cut out a section of pipe where a 1-inch (30
millimeter) hole developed. That section must be repaired and
replaced before the flow of oil may resume.

The hole allowed more than 6,000 barrels of oil to leak
into the ground.

By midnight, vacuum trucks had sucked up the remaining
crude in the shut section of pipe, loose oil on and in the
ground and about 6,000 barrels of water contaminated by the
(Additional reporting by Gene Ramos in New York; Editing by
Walter Bagley)

UPDATE 1-Enbridge Line 6A pipeline stays shut; oil climbs