Canadian midstream companies have been impacted by the devastating start to wildfire season.
Above-normal temperatures and a lack of rain have caused fires to spread across Canada since May. There are over 450 active fires throughout Canada as of June 15, according to the country’s interagency fire center.
The most fires are currently in the Quebec province, followed by Alberta, where much of Canada’s crude oil is produced. Many midstream companies operate there as well. Second-quarter midstream volumes could be impacted as some midstream companies and producers temporarily shut down operations due to wildfires. However, the impact from fires seems moderate thus far.
Select Canadian Midstream Operations Temporarily Halted by Wildfires
Midstream company TC Energy (TRP) on Saturday said that it had completed the controlled shutdown of two compressor stations on its NOVA Gas Transmission System and a gas storage facility that are in close proximity to active wildfires.
Meanwhile, other sections of the NOVA Gas Transmission System and pipeline systems continue to operate, with TRP monitoring the situation.
As a precaution, TRP is not deploying employees to facilities near active wildfires unless necessary. The facilities are being monitored remotely and operations can be halted, as required.
Keyera Corporation (KEY) last week restarted all six gas plants that were shut due to the wildfires. The impact to the firm’s second-quarter G&P operating margin is expected to be between Can$13 million and Can$15 million.
Pembina Pipeline Corporation (PPL) in May temporarily shut down operations due to wildfire evacuation orders. The facilities resumed operations a few days later, and Pembina said it was not aware of any material damage to its assets.
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