VANCOUVER (NEWS 1130) — As your pocketbook takes a hit from soaring gas prices, one analyst says it proves just how reliant we are on all types of pipelines in B.C.
After the gas pipeline rupture in Prince George earlier this week, gasoline prices hit almost record levels. One reason for it is that refineries use natural gas to undertake their business, so tight supply means cuts to their output, which in turn raises prices at the pump.
Dan McTeague, senior petroleum analyst with gas price tracker GasBuddy, says it has proven a point to anyone who thought pipelines had nothing to do with gas prices. In the case of the Prince George pipeline explosion, he says that refineries must find alternatives to power their run operations in the short-term.
“Unfortunately for us, we do rely pipeline evermore, not just here in Vancouver, but right across North America,” McTeague tells NEWS 1130. “It’s an important way of getting our products to market.”
He expects prices to go up across all fuel types, from your regular 87 octane to Diesel fuel to jet fuel, and he says people should not be surprised to see gas prices in the $1.60 range without quick alternatives.
“Without natural gas, this disruption could create some undue hardship for them, but more importantly, we could see several days of increased prices,” he says. “We’re also at prices rising in order to attract shiploads of gasoline that can come in from other places, particularly in Asian markets. Here, I am thinking Singapore, Indonesia, perhaps even Taiwan or South Korea.”
In a Saturday press release, Enbridge Inc., which runs the gas pipeline in Prince George, said crews will be able to slowly move in and clean up the ruptured pipe, but gave no definite date when gas can start flowing at normal levels.
— with files from Sonia Aslam
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