Husky refinery reduces output after flooding shuts oil pipeline

Husky Energy's Prince George refinery has reduced production by more than 40 per cent because its supply of oil has been cut off by Pembina's precautionary shutdown of its B.C. pipeline.

Pembina shut down its pipeline more than a week ago to assess the impacts of widespread flooding in northeastern B.C.

The small Prince George oil refinery has reduced it throughput to 6,900 barrels of oil per day - used largely to produce gasoline and diesel for the north-central B.C. region - from its normal level of 12,000 barrels, said Husky Energy.

Because of the pipeline shut down, Husky is now trucking oil to its Prince George refinery from its Rainbow Lake operations in northwest Alberta.

While Husky is getting daily reports from Pembina, it deferred the question of when the pipeline would be opened to Pembina.

Pembina said Tuesday they still do not have a timeline for a restart of the pipeline that brings oil from northeastern B.C. to Prince George, and then onto Kamloops.

"We're hopeful it will be sooner than later," Husky Energy spokesperson Carla Yuill said Tuesday.

While the Husky Energy plant is a small facility, it is an important supplier of fuel in north-central B.C. The refinery produces all grades of unleaded gasoline, seasonal diesel fuels, mixed propane and butane, and heavy fuel oil.

Asked if the production reduction would impact the supply of fuel to the region, Yuill said she had not heard of any ripple effect.

Of four fuel service stations contacted in the Prince George area, representatives either declined comment or didn't know if there had been an impact.

The Husky refinery in Prince George was built in 1967 but has undergone extensive upgrades since, including work to reduce sulphur, expand production and improve air emissions.

The production reduction has not impacted the workforce of 85 people, said Yuill.

The major floods that caused washouts in the Peace region were considered a one in 40-year event.

Both the rainfall and the flood warnings have ended in the region.

Pembina Pipelines said it shut down its western pipeline in British Columbia as a proactive measure. The pipeline does not have any leaks, but the pipeline has been exposed in some areas, said the company. The company was planning an assessment of the line, before making a decisions on a restart.

"We do not have any update on when we expect to be re-opening our line," Pembina spokesperson Shawn Davis said Tuesday.

The flooding also caused numerous washouts to roads in northeastern B.C.

Many have been re-opened, but a 30-kilometre stretch of Highway 97 between the Mackenzie junction and Chetwynd remains closed as crews continue repairs.

The public is asked to check www.drivebc.ca for updates.