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11/09/2011 02:21 pm ET Updated Jan 09, 2012

TransCanada's Keystone I Oil Pipeline Shut Down

CALGARY, Alberta (Reuters) - TransCanada Corp's Keystone I oil pipeline to the United States from Canada is shut down due to mechanical issues, a spokesman said on Wednesday.

There is no word yet on the extent of the problems affecting the 591,000 barrel a day pipeline which runs to southern Illinois, and Cushing, Oklahoma, from Alberta, TransCanada's Terry Cunha said.

The outage comes as the U.S. State Department considers whether it should force TransCanada to reroute part of the pipeline's $7 billion expansion, a move that could delay a go-ahead decision on Keystone XL for up to 18 months.

The base Keystone project started operations in 2010.

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