By Dan Molinski

TC Energy Corp. said Thursday it has stopped pumping oil from its 610,000-barrel-a-day Keystone pipeline after an oil leak was discovered in Kansas.

"We have shut down the Keystone Pipeline System and mobilized people and equipment in response to a confirmed release of oil into a creek, about 20 miles south of Steele City, Nebraska," the Calgary-based company said in a statement.

It said the emergency shutdown happened at around 8 p.m. local time Wednesday night after alarms sounded due to detection of a drop in pressure in the pipeline. "The affected segment has been isolated, and booms deployed to control downstream migration of the release," it said.

The news has helped fuel a jump in U.S. crude-oil prices, with WTI crude-oil recently trading 4% higher at $74.92 a barrel.

The 2,687-mile Keystone Pipeline System delivers Canadian and U.S. crude oil to markets around North America. It runs east from Hardisty, Alberta, in Canada then down into North Dakota in the U.S., and further south into Nebraska. From there it splits, with one arm heading toward refineries in Illinois while another arm heads to Oklahoma and Texas.

Write to Dan Molinski at dan.molinski@wsj.com


Corrections & Amplifications

This article was corrected at 10:53 a.m. ET to clarify that TC Energy Corp. said Thursday it has stopped pumping oil from its 610,000-barrel-a-day Keystone pipeline after an oil leak was discovered in Kansas, not Nebraska.

(END) Dow Jones Newswires

12-08-22 0857ET