Industry experts say there is no immediate cause for concern, as the company behind a major pipeline works to keep fuel flowing into the province.
A section of an Imperial Oil pipeline carrying gasoline, diesel and jet fuel from Gretna to Winnipeg could remain closed for maintenance for up to three months, the provincial government said in a news release Sunday.
While the announcement initially sparked concern among City of Winnipeg officials, leaders in Manitoba’s agriculture and transportation industries say they do not anticipate significant impacts.
“The beef industry, and agriculture industry in general, are very resilient… very good at pivoting and getting things done as needed under the circumstances,” Carson Callum, general manager of Manitoba Beef Producers, told the Free Press.
“At this point, we are just ensuring that we are keeping an eye on it, because it is developing.”
Callum, whose organization represents roughly 6,000 provincial cattle producers, said he is in direct contact with the office of agriculture Minister Ron Kostyshn, who has been providing information to industry leaders.
He expects to continue receiving regular updates and applauded the provincial government for convening a “supplier table” comprised of Manitoba’s largest fuel suppliers for advice on how to minimize disruptions.
Leadership from the Manitoba Trucking Association similarly said it is communicating with government officials. The association represents roughly 28,000 industry employees across more than 300 companies.
“We have been advised that the diesel supply is being managed and that it is expected to be maintained to meet industry needs throughout the pipeline shutdown and maintenance period,” communications manager Susan Green said via email.
“Trucking companies will be focused on ensuring northern communities are well-supplied while also balancing the demands posed as a result of the pipeline shutdown.”
Manitoba consumes roughly 1 billion litres of diesel fuel annually, with seasonal spikes in consumption, Green said.
Winnipeg Richardson International Airport has been assured by its supplier that it will not experience jet fuel shortages or service interruptions, airport communications manager Michel Rosset said in an email statement.
“However, we’re closely monitoring the situation,” he said.
On Monday, Gasbuddy, a crowd-sourced website that monitors pump prices was tracking an average regular gasoline price of $1.31 per litre in Winnipeg, which is consistent with prices logged before news of the closure broke.
Manitobans are not likely to feel financial impacts unless the interruption persists beyond the three-month repair timeline, said Patrick De Haan, Gasbuddy’s head of petroleum analysis.
“This is the type of thing where, on Day 1, it’s going to be business as normal,” De Haan said. “(But) this is an issue that could worsen over time. It bears monitoring, especially as we get closer to the summer driving season, when the demand for gasoline is much higher.”
Jet fuel prices may rise slightly, but that expense could be mitigated by airlines carrying extra fuel from other regions and is unlikely to be passed onto consumers, he said.
Many farmers already purchase fuel wholesale and have it delivered by tractor-trailer, so they are also unlikely to suffer, De Haan added.
“That could be a little problematic, depending on how many farmers are buying and when they buy, but I still think it’s not going to be more of a low-level headache that it would be a migraine.”
The analyst noted the three-month repair timeline is longer than some projections he’s seen for maintenance at other pipelines.
The project could be influenced by environmental or infrastructure conditions at the repair site, which Imperial Oil has said includes a section passing beneath the Red River, De Haan said.
If the province finds itself short of fuel, it could waive restrictions on fuel transportation, allowing tractor-trailers to carry larger loads, he added.
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