A petroleum analyst is warning a crimp in supply is creating a gas shortage in parts of Ontario, including Ottawa.
Gasbuddy.com's Dan McTeague tells CFRA's News and Views with Rob Snow a decision by the National Energy Board to cut the pressure of a pipeline out of Montreal by 10 percent is going to lead to a few gas stations temporarily running dry.
"Valero, Shell, Esso and Suncor are now on allocation," says McTeague. "There will be supply restrictions and you will see yellow tape at certain gas stations on a rotational basis."
"How long this will last depends on when Trans-Northern Pipelines can satisfy regulars they are able to have pipelines meet or exceed the required pressure. That could be several weeks."
McTeague says the allocation notice has gone out to "pretty much everyone," whether it's Belleville, Kingston or Ottawa.
He points out a few stations in the Greater Toronto Area had to temporarily close after running out of fuel.
on Tuesday evening, Trans-Northern Pipelines issued the following statement:
Trans-Northern’s highest priority is to operate the pipeline in a safe, reliable, and environmentally responsible manner to protect the public, the environment, and the pipeline.
We have initiated the pressure restrictions as identified by the National Energy Board (NEB) and appointed an independent third party to track and report on our progress. We continue to carefully review the other NEB conditions and our existing operating protocols to develop our action plan and assess the impact, including the implications on volume and supply, but can’t speculate as to what those impacts will be. We are working closely with the NEB to ensure we meet all regulatory requirements.
Trans-Northern will continue to be vigilant in its monitoring and maintenance activities, including operating below approved pressure ranges until we are confident the pipeline can return to full capacity.