Part of Seaway Pipeline Shut After Oklahoma Spill

The Seaway Pipeline Co shut down part of its pipeline system following a leak of crude oil in Cushing, Oklahoma on Monday, said Enterprise Products Partners LP , which operates the pipeline in a venture with Enbridge Inc.

The 500-mile, 30-inch diameter pipeline system connects the U.S. crude storage hub of Cushing to the Freeport, Texas area, and a terminal and distribution crude oil network that serves all the refineries in the Greater Houston area.

The prompt crude spread, which often correlates to the supply-demand balance in Cushing, traded as wide as 69 cents on Monday, the biggest discount in nearly two months.

Energy intelligence firm Genscape also reported the shutdown of its 450,000 bpd Seaway Twin pipeline, which twins the existing Seaway pipeline.

The Seaway Pipeline system has a total capacity of about 850,000 bpd, according to the company website.

A company spokesman said the spill occurred on the Seaway legacy line. He could not immediately confirm if the incident also resulted in the shutdown of the Seaway Twin pipeline, and did not provide an estimate of the volume spilled.

The Seaway spill comes on the heels of a Sunoco Logistics Partners LP pipeline spill on Friday, which released about 1,300 barrels (55,000 gallons) in the vicinity of the Susquehanna River in Lycoming County, Pennsylvania.

Enterprise said on Monday there was no threat to the public and no evacuations were ordered following the spill, located near the intersection of Lynnwood Avenue and Texaco Road in Cushing.

The company was working with emergency responders and law enforcement to address the situation.

(Reporting by Devika Krishna Kumar, Arpan Varghese and Karen Rodrigues)