Broken pipeline cuts British supply during peak energy demand
▻https://www.reuters.com/article/us-oil-forties/forties-crude-oil-pipeline-now-closed-down-for-further-inspection-idUSKBN1E
Britain’s biggest pipeline from its North Sea oil and gas fields is likely to be shut for several weeks for repairs, its operator said on Tuesday, disrupting gas flows and sending international crude prices to their highest since mid-2015.
The closure has struck during a winter freeze in Britain, where snow and ice have driven up demand for heating fuel just as gas flows through the network, which carries a third of Britain’s gas produced offshore, were disrupted.
“We are working to get the pipeline restored to full operation as quickly as we can safely do so... We have previously indicated a time frame of three to four weeks and we believe it is no less than two,” operator INEOS said in a email to customers seen by Reuters.
The pipeline, which carries about 450,000 barrels per day (bpd) of Forties crude, was shut after cracks were found.
It has particular significance to global markets because Forties is the largest out of the five crude oil streams that underpin the dated Brent benchmark, against which other crude prices are broadly based. Benchmark Brent crude prices rose above $65 per barrel for the first time since the middle of 2015 following the closure on Monday.
INEOS only completed the purchase of the Forties pipeline system from oil major BP in October. A minor leak had caused a partial shutdown on Dec. 7 and a full shutdown on Monday. INEOS said the small crack has not increased over the past 24 hours.