Fuels

Petro-Canada Experiencing Supply Problems

As many as 90 stations affected by ongoing refinery outage

CALGARY, Alberta -- Petro-Canada said that between 80 and 90 gas stations are out of fuel in British Columbia and Alberta as it continues to grapple with a glitch at one of its refineries, reported the Canadian Press. The company was scheduled to face off Thursday in a conference call with angry independent station owners demanding compensation to make up for their growing losses, added a CBC News report.

There are reports that some independent gas stations that buy fuel from Petro-Canada have also run out of fuel, but company spokesperson Kelli Stevens said they are likely just waiting [image-nocss] for a new delivery. She doubted the independent stations they supply would experience shortages for as long as those owned by Petro-Canada.

Stevens told CP that about 120 employees are working "around the clock" to fix the problem in a unit at an Edmonton refinery used to make gasoline. It was shut down earlier this month, and Stevens said the company is hoping to have the unit fixed in a couple of weeks. But she warned that even when it is repaired, it will take time to get the refinery unit back up to speed to bring fuel supplies back to normal.

"We regret any inconvenience that this unplanned situation may cause our customers," Dan Sorochan, Calgary, Alberta-based Petro-Canada's vice president of refining and supply, said in an August 12 statement. "We are working hard to minimize the impact of this situation and have established a dedicated team of employees to focus on this top priority."

He added, "While gasoline deliveries are continuing, we wanted to ensure our customers were aware of the situation. Despite the potential for short-term retail site outages, gasoline will continue to be available at many locations while we work through this situation."

The statement also said, "Petro-Canada is currently working to minimize the inconvenience to customers in Alberta and the interior of British Columbia as it deals with an unexpected supply shortfall of gasoline at its Edmonton refinery.

"Due to unforeseen circumstances, the catalytic cracking unit, a key part of gasoline production at Petro-Canada's Edmonton refinery had to be shut down last week. This has limited the supply of gasoline, forcing Petro-Canada to temporarily reduce the volume of gasoline delivered to customers and associates. As a result, customers in Alberta and the interior of British Columbia may notice outages of gasoline at some Petro-Canada retail sites.

"Petro-Canada has taken direct and immediate action to minimize the potential inconvenience to its customers:

We are working to repair the gasoline processing unit safely and as quickly as possible. We are adjusting our national and local distribution channels to maximize gasoline availability in Western Canada. We are deploying as many trucks as possible to move gasoline into the area and are working through our supply channels to source additional gasoline supply. We have placed the proper priorities on serving Essential Services. Temporary safety and notification measures have been put in place to clearly identify any sites that are experiencing a temporary outage. Most notably, price signs will be "zeroed-out."

Calgary "gas bar" (small station) owner John Balanazario said he and other station owners have been forced to offer higher grade fuels at lower grade prices and absorb the losses out of their own pockets. "It's bad for business, but good for the customers," he told CBC.

Customer Bell Ainsworth said she can't understand why there is no regular gas left at the pump in the oil-rich province. "We produce it here," she told CBC. "Why are we running out?"

Petro-Canada could take a long-term hit if shortages drag on, said Mike Percy, dean of the University of Alberta School of Business. "People may switch," Percy told CBC. "Whether they switch in the long term, it depends on the convenience of the particular Petro-Canada station."

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