Imperial Oil Pipeline Outage Threatens Fuel Supply in Winnipeg — OPIS
Elected officials in the Canadian province of Manitoba say they are taking steps to manage fuel supply into the region around Winnipeg after the shutdown of Imperial Oil's Winnipeg Products Pipeline on Sunday.
A statement from the provincial government said it had organized a "supplier table" of Manitoba's largest fuel suppliers to help manage supply while repairs are made to the pipeline.
"These industry partners are leveraging extensive supply networks and actively working to minimize customer and end-user impacts by maintaining Manitoba's fuel supply through other means including rail and truck," the provincial statement said.
A section of the pipeline that runs between Gretna and a Winnipeg terminal was closed so preventive maintenance can be conducted, including replacing a section of the pipeline that runs under the Red River, south of Winnipeg. It's about 60 miles between the two cities.
In a statement Sunday, Imperial said the decision to shut the pipeline came after an inspection earlier this year and that it expected the work to take approximately three months.
The pipeline was not compromised and no fuel was spilled, the government said.
The pipeline carries gasoline, diesel and jet fuel to the greater Winnipeg region, according to the company, which said Imperial and third-party customers ship on the line.
Imperial said it is "leveraging its extensive supply network and working around the clock" to minimize disruptions caused by the shutdown. The company said it is arranging alternate truck and rail transport for fuel through the region and arranging for customers to pick up product at other terminal locations, including at the Gretna terminal which remains connected to pipeline supply.
The company said it is adding additional gasoline storage and loading capacity at the Gretna terminal, working to provide additional gasoline supply by rail and truck to the Winnipeg terminal and arranging for customers to use other gasoline supply points outside of the region. It said diesel supply will be managed by rail and it was working to increase offload capacity at the Winnipeg terminal. Jet supply will be managed by truck, the company said.
"We are working to ensure an ample and stable supply of fuel supplied by Imperial into the region," the company statement said.
Gasoline prices in Winnipeg on Monday averaged C$1.315 (US 97cts)/liter, up about 0.4cts since Sunday but 0.2cts cheaper than a week ago, according to GasBuddy data. The national average gasoline prices Monday was $1.5635/liter, according to GasBuddy.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
March 18, 2024 16:12 ET (20:12 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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