Parkland Pausing Burnaby Refinery Processing Ops

Parkland Pausing Burnaby Refinery Processing Ops
The decision was made in response to the "ongoing crisis" in British Columbia.

Parkland Corporation (TSX:PKI) announced earlier this week that it has initiated steps to pause refinery processing operations at the Burnaby Refinery.

The company, which revealed that it will maintain the refinery in “ready-mode”, outlined that the decision was made in response to the “ongoing crisis” in British Columbia that resulted in the shutdown of the Trans Mountain Pipeline on November 14. The pipeline is the primary source of crude oil feedstock to the refinery.

While the refinery’s processing operations are being paused, its blending, shipping, terminal and rack activities remain operational, Parkland said. This enables available fuels to be offloaded from ships and rail directly into the refinery, from where they can be stored and distributed across the lower mainland and Vancouver Island, the company pointed out.

“Due to a lack of crude oil supply from the Trans Mountain Pipeline, we are maintaining the refinery in ready-mode”, Ryan Krogmeier, the senior vice president of supply, trading and refining at Parkland, said in a company statement.

“Ready-mode, is a state of operational readiness which positions us to recommence processing once sufficient crude oil feedstocks become available,” he added in the statement.

“We are focused on serving our customers and communities. Our teams are working tirelessly to source and import available refined fuels. By leveraging our supply capabilities and infrastructure at the refinery, we are confident in our ability to keep our retail and commercial locations supplied with fuel,” Krogmeier went on to say.

On November 25, Trans Mountain Corporation announced that the Trans Mountain Pipeline remained shut down following a voluntary, precautionary shut down on November 14, in anticipation of the impacts of heavy rainfall and extreme weather conditions.

“With the continued deterioration of weather conditions in the region in the coming days, Trans Mountain is closely monitoring the situation to ensure our crews can continue to progress safely, particularly in areas still dependent on air support for access and provision of supplies and equipment,” Trans Mountain Corporation said in a statement posted on its website on Thursday.

“The pipeline remains safely in a static condition and there is no indication of any loss of containment or serious damage to the pipe. Our focus has shifted to complete repairs to ensure integrity of the line where it has been exposed and impacted by flooding and debris,” the company added in the statement.

“Work continues to progress towards a safe restart of the pipeline, in a reduced capacity. Key to successful execution of the restart plan will be access for equipment, fair weather, and no new findings of concern. A sustained effort will continue to return the system to its full capacity,” the company continued.

In an update on November 24, Tran Mountain Corporation noted that this is the longest period the pipeline has been shut down in its nearly 70-year history. The pipeline was established to create a reliable energy supply for Canada and the United States and had an initial capacity of 150,000 barrels per day with four pump stations along the line and a marine loading dock, Trans Mountain Corporation’s website highlights. Since 1953, the pipeline’s capacity has been increased a number of times now carries approximately 300,000 barrels per day, according to the company’s site.

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