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Released April 18, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--A wildfire broke out in Alberta as a result of a breach of a 36-inch natural gas pipeline controlled by TC Energy (NYSE:TRP) (Calgary, Alberta), the Canadian government said, but has since been brought under control.

The Canada Energy Regulator (CER) said it was responding to an incident on TC Energy's Grand Prairie network near Edson, located in west-central Alberta.

"Preliminary information indicates that a 36" natural gas pipeline ruptured around 10:45 a.m. on April 16, 2024," the regulator stated. "The rupture caused a small wildfire on Crown land, which is being held."

The network in question is part of the broader NOVA Gas Transmission Ltd line (NGTL), a 15,500-mile network that ties western Canadian gas markets to the domestic and U.S. markets. TC Energy said there were no injuries reported and the impacted section of the pipeline has been isolated and shut down.

"The remainder of our system is operating normally and there are no commercial impacts at this time," the company said.

The NGTL system delivers an average of 11.6 billion cubic feet of natural gas across its vast network. It has about 1,100 receipt points and more than 300 delivery points, reaching as far as Toronto.

Regional natural gas prices were seemingly unaffected by the outage. Henry Hub, the U.S. benchmark for the price of natural gas, was down from Tuesday's session to trade at $1.67 per million British thermal units.

The Alberta Energy Regulator in an annual forecast said it expected natural gas prices would be low this year because of adequate supplies and lower demand from power generation.

Spring, meanwhile, marks the start of wildfire season in Alberta. Authorities in Edson issued a fire advisory for forested areas earlier this week.

"Dry grass can catch easily and burn quickly. Any spark, hot exhaust or friction can cause a wildfire," a regional advisory issued late Tuesday read. "Avoid working near or on dry vegetation to help prevent wildfires."

Wildfires in the region can be severe, with smoke blanketing much of the northern parts of North America east of the Mississippi. More than 100 active fires in the region in May 2023 prompted oil and gas producers in Alberta to shut in production.

Elsewhere, Canada is looking to break out of a North American deadlock, primarily through exports of liquified natural gas (LNG) from projects already planned or under construction in British Columbia. The expansion of the Trans Mountain pipeline could help the nation do the same with crude oil.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
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