Gas prices are expected to rise exponentially across British Columbia.
That’s according to Dan McTeague, Senior Petroleum Analyst with Gasbuddy.com.
The rise comes on the heels of Kinder Morgan’s decision to suspend all non-essential activities and related spending on the Trans Mountain expansion project due to B.C.’s legal challenges.
McTeague tells Mix News certain areas in the province, specifically Vancouver, could see prices creep over $2 a litre.
“Vancouver is in a particularly dangerous situation given it barely has enough fuels to meet its own needs at the best of times – the only thing that would give right now is the price but that would soon be followed shortages, so it would be a one-two punch that would hurt the B.C. economy.”
He says the Vancouver area relies on the existing pipeline to bring in between 50 to 65 per cent of their gas, while the rest of the province, with the exception of Prince George, gets almost 100 per cent from Trans Mountain.
If the dispute continues, the province could also face gas shortages.
“You can’t rail it in, the rails are already plugged, you can’t bring it in by vessels, we don’t have extra storage facilities that can accommodate the loss of oil and gas coming from the Trans Mountain Pipeline.”
While many in Alberta sees this as B.C’s problem, McTeague ensures people across Canada will be impacted.
“If we fail with Kinder Morgan we also fail the oilsands industry and that casts a much larger shadow across Canada. If we lose the oil industry we lose the value of our Canadian dollar, our number one trading commodity is oil, like it or not, and it’s devaluation because of a lack of pipeline capacity.”
He says this is the main reason why the Canadian dollar is trading for very little compared to the American. Because Canada prices their fuel with U.S. terms, they are losing around 14 cents a litre, meaning Canadians are paying the difference across the country.