Nexen, the Canadian unit of China’s Cnooc Ltd., reported a spill of about 31,500 barrels of crude, sand and water in the oil-sands region after a pipeline failure, the Alberta Energy Regulator said.

The regulator is starting an investigation into the spill of so-called emulsion about 36 kilometers (22 miles) southeast of Fort McMurray, according to a statement Thursday. The pipeline was a 16-inch line connecting Nexen’s well pad to a processing facility, said Peter Murchland, a spokesman for the regulator.

The pipeline and pad site have been isolated to contain the release, which hasn’t affected any bodies of water. There have been no reported impacts to the public or wildlife.

Canada’s energy industry is struggling to build new pipelines, as environmental groups and communities affected by proposed projects delay construction over perceived risks of spills and rising carbon emissions from the oil sands.

Source: www.bloomberg.com

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