Gas on the way, province promises, as some pumps dry up By: Kevin Rollason and Gabrielle Piché Posted: 6:45 PM CDT Wednesday, Mar. 20, 2024 Last Modified: 8:00 PM CDT Wednesday, Mar. 20, 2024 Updates

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The Manitoba government tried to tamp down growing unease about the gas supply Wednesday as the pumps ran dry at some Winnipeg locations, retailers scrambled to fill their tanks and Imperial Oil confirmed rail and truck shipments had started after it was forced to close its Manitoba pipeline this week.

“I want to assure Manitobans that at this point, there is no immediate concern as we continue to work with suppliers of oil and gas across Winnipeg to ensure we have adequate supply,” Economic Development Minister Jamie Moses said when questioned about consumers being unable to fill up at a handful of gas stations.

One of those was a Domo outlet on McPhillips Street, where the pumps were closed late in the afternoon. The attendant advised a customer to check out the nearby Petro-Canada gas bar.

Stations around Winnipeg have been limiting — or selling out of — gasoline. Some began capping fuel-ups to $50. An Esso outlet near Oak Bluff listed its premium gas at regular gas prices.

“I use my vehicle for work,” Christina Tolea said while pumping gas at a Petro-Canada. “If I need to fill up my tank, I’m just going to go to two different gas stations.”

She thinks everyone should fear a gas shortage.

Two pumps over, Carlos Navarro said he’s starting to worry “a little bit” about a gas shortage.

He heard the news and figured he’d fill up. The fuel station is busier than normal, he noted.

Navarro had to pay at a cashier Wednesday, instead of plugging in his card at the pump like normal. He was prompted to do so before fuelling.

“I’m noticing other people going in,” he said, glancing around.

Premier Wab Kinew admitted earlier in the day, while being pressed by the Tories in question period, the pipeline shutdown “is a serious issue and it’s one that Manitobans are going to have to learn to live with, all of us together, for the next few months.”

Imperial Oil expects the pipeline that runs from Gretna, near the U.S. border,  to Winnipeg, will be out of commission for three months while it is being repaired. “Integrity concerns” were identified in a section of pipe just south of St. Adolphe.

Spokesperson Keri Scobie said Wednesday both trucks and trains — on both CN and CP Rail lines — were being used to transport gas to the city.

“For proprietary reasons, we don’t share volumes,” Scobie said.

Kinew said 50,000 barrels were arriving in the city by train daily “according to our supplier network.”

The provincial government is holding daily meetings to monitor the gas supply and prices and ensure supply can meet the demand of Manitoba drivers and businesses that rely on fuel.

“We have been working very closely and leaning on those suppliers in Manitoba. They’ve assured us there is adequate supply here in the immediate term. We’ve also reached out to some individual retailers and we’re aware that there are some additional shipments coming in for some individual retailers tonight,” said Moses.

The minister said the province is working with the industry to identify additional cost or challenges related to shipping the fuel by truck and rail. He wouldn’t say whether the province would cover any additional costs.

He said there is no indication the pipeline being out of commission has affected prices.

Dan McTeague, a fuel analyst, called the spotty gas shortages the “nature of the beast” in such situations.

However, there’s no need to panic — and panicking will make things worse, he cautioned. While some gas stations may run out of fuel, they’ll refill. And while some are out, others will be fully loaded, he explained.

Hoarding fuel will exacerbate the problem, he said.

“At this point, I don’t expect an impact on city services … We have our own supply of fuel — that’s important to know. We have fuel for our emergency vehicles and our transit buses.”–Winnipeg Mayor Scott Gillingham

Winnipeg Mayor Scott Gillingham assured the public the municipal government has enough gasoline on hand.

“At this point, I don’t expect an impact on city services,” Gillingham said. “We have our own supply of fuel — that’s important to know. We have fuel for our emergency vehicles and our transit buses.

“We can continue to provide service… we’re pretty confident we are in good shape and our plans are in place. We will not see an impact.”

As for the pipeline itself, Scobie said it “has been safely cleared of product and the engineering and geotechnical work is underway.

“We will continue to share updates as the maintenance work continues.”

The loss of the pipeline has gasoline companies scrambling to ensure they had enough fuel for their service stations and pumps.

“We are still relying on remaining inventories in Winnipeg. We are working hard to bring it in by truck and rail,” said Graham Carlyle, vice-president of corporate services at Domo.

Normally, gasoline reaches Winnipeg after flowing through pipes to two terminals, one owned by Imperial Oil the other by Shell Canada, and then is transferred to fuel trucks, which transport it to service stations.

The shutdown of the pipeline has changed all that.

“Instead of sending trucks to either of these terminals, we are sending them to Gretna, Saskatoon and possibly Thunder Bay,” Carlyle said.

But he said there is now another shortage to contend with.

“There’s a run on trucking (capacity) right now,” Carlyle said. “But everyone is working hard to bring it in. We’re still doing our very best.”

Craig Gilpin, CEO of Red River Co-op, which has dozens of service stations across Winnipeg and as far away as Gimli, Kenora and Dryden, said Federated Co-operative Ltd., its fuel supplier, has been actively working out a supply plan to keep their pumps pumping during the next three months.

“We are confident the plan will see Red River Co-op remain with fuel supply,” Gilpin said.

“That said, this is an evolving situation.”

During question period, the Tories put pressure on the government, noting the shutdown will affect more than a million people in Manitoba for at least three months.

“Manitobans are worried that a supply shortage caused by this pipeline shut down will lead to further increases to the cost of gas and the carbon tax hike will make things even worse April 1.”

— with files from Carol Sanders and Joyanne Pursaga

kevin.rollason@freepress.mb.ca

gabrielle.piche@freepress.mb.ca