Canada's Trans Mountain Oil Pipeline Shut Down Due to British Columbia Storms

OTTAWA (Reuters) — Canada's Trans Mountain oil pipeline has been shut down temporarily because of rainstorms pounding parts of the province of British Columbia, the operating company said in a statement on Monday.

The line, which takes crude from Alberta to the Pacific Coast, has a capacity of 300,000 bpd of oil and refined products. Work on a proposed expansion project has also been halted, the Trans Mountain Corporation said.

The pipeline is owned by the Canadian government.

"As a precaution, Trans Mountain has shut down the Trans Mountain Pipeline due to widespread flooding and debris flows in the area around Hope, BC," a company spokeswoman said in an email.

Heavy rain and flooding are causing widespread disruption across Canada's westernmost province. Landslides have trapped the occupants of between 80 and 100 vehicles on highways and the entire town of Merritt has been ordered to evacuate.

Western Canada Select crude for December delivery, the benchmark Canadian heavy crude grade, showed limited reaction to the pipeline shutdown. WCS last traded at $19.15 per barrel below U.S. crude futures, 70 cents narrower than Friday's settlement price.

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