Unplanned shutdown of Imperial pipeline affects delivery of fuel to Winnipeg

An abrupt shutdown of a key pipeline is fueling concerns about gas shortages and price spikes.

“I don’t think there’s any reason whatsoever to panic,” said Dan McTeague, the president of Canadians for Affordable Energy.

On Sunday, Imperial Oil Ltd. released a statement announcing a temporary three-month pause on its Winnipeg Products Pipeline – which carries gas, diesel and jet fuel from Gretna, near the U.S. border, to Winnipeg and surrounding areas.

The company said it “made the proactive decision to carry out preventative maintenance” on a section of the pipeline following inspections conducted earlier this year. A part of the pipeline that runs under the Red River south of St. Adolphe will need to be replaced.

According to Imperial, the line wasn’t compromised and no materials were spilled into the environment.

The company said it’s working with the province and the city of Winnipeg to prevent any disruptions.

“The shutdown of the pipeline…will have no more than an inconvenient effect on consumers,” McTeague said. “It’s not likely to have any impact in terms of price.”

McTeague also said most gas stations won’t be running on empty.

“You may see a scenario play out over the next several days of one in every four gas stations closed for a few hours, maybe some for a day – but no more than that – to get refilled,” he said.

In a statement to CTV News, the CEO of Red River Co-op said the company “has been actively working out a supply plan” to maintain fuel stock.

The Winnipeg Airports Authority said in a statement to CTV News it doesn't expect a fuel shortage from its supplier and there shouldn’t be any flight disruptions related to the shutdown.

Imperial’s plan includes adding additional storage and loading capacity at the Gretna terminal and sourcing alternate supply by rail and truck to its Winnipeg terminal.

Manitoba Premier Wab Kinew said his government is working with Imperial and other major suppliers to ensure a continuous supply. However, he said the province is also exploring other options in case something goes wrong.

“We as a government are working on a parallel plan,” Kinew said.

The city of Winnipeg is also taking steps to ensure the shutdown doesn’t impact operations.

“If there are going to be any temporary impacts on gasoline supply to the city, the city of Winnipeg organization wants to do everything it can,” said Michael Jack, the city’s Chief Administrative Officer. “We’re looking at some measures we could do to lessen our use over the next week or two.”

Jack said measures could include pulling some city vehicles off the road or introducing fuel restrictions.

“We are looking at every conceivable scenario,” he said.

Kinew wouldn’t say whether his government will introduce a cap on gas consumption.

McTeague said any significant disruptions will probably be seen within the first few days. Once a routine is in place, retailers will have the supply to meet the demand – especially as the province nears farming season and summer vacation.