By Georgina McCartney and Arathy Somasekhar
May 22 (Reuters) – An oil pipeline operated by Plains All American in East Los Angeles, California, was shut down after a rupture, the company said on Friday.
The line was struck by a third party conducting excavation work, the company added. It did not provide details on how much oil may have leaked or a timeline on when flows would be restored.
The ruptured pipeline was Line 63, which gathers and distributes crude oil from the San Joaquin Valley for delivery to another pipeline and local refiners, two trading sources said.
The fire department said a coordinated clean-up effort was underway and that there were no injuries due to the incident.
“Units responded to a petroleum line leak that was hit during construction,” it said, adding that the pipe was shut down at the source and the flow had been stopped.
A shutdown of the pipeline could disrupt crude supplies to regional refineries and hit processing at a time when the U.S.–Israeli war on Iran has sharply driven up fuel prices in the region. California gasoline prices stood at $6.131 on Friday, the highest in the nation.
“Refiners in the LA area are short crude and rely heavily on foreign crude. This exacerbates that problem,” said one of the sources, a California crude trader.
(Reporting by Ashitha Shivaprasad in Bengaluru, Georgina McCartney and Arathy Somasekhar in Houston; Additional reporting by Anjana Anil; Editing by Alexander Smith and Nia Williams)
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