Trans Mountain closure forces refinery pause

Parkland Corp. is moving to pause its refinery processing operations in Burnaby, BC, due to a lack of crude oil supply from the Trans Mountain Pipeline, which has been closed as a precautionary measure due to flooding in BC.

The company says it plans to keep the refinery, which is a key source of gasoline for the Vancouver area, on standby so it can quickly resume processing.

“We are keeping the refinery in ready mode … which positions us to restart processing once sufficient crude oil feedstock are available,” said Ryan Krogmeier, Parkland’s senior vice president of refining, in a statement.

Parkland said its mixing, shipping, terminals and shelving activities remain operational. He said this allows fuels to be discharged from ships and rail directly into the refinery, from where they can be stored and distributed.

The refinery can process around 55,000 barrels per day of crude and synthetic oil into gasoline, diesel, jet fuels, asphalt, heating fuels, heavy fuel oils, butane and propane.

The company that owns the Trans Mountain pipeline has said it is optimistic that the pipeline could restart by the end of the week.

Trans Mountain Corp. has 350 people working around the clock to restart the pipeline, which has been closed since Nov. 14.

Concerns about a gasoline shortage led the British Columbia government to limit drivers to 30 liters per fill at gas stations and to encourage people to limit their trips.

This Canadian Press report was first published on November 23, 2021.

Companies in this story: (TSX: PKI)

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