FOR IMMEDIATE RELEASE
Feb. 26, 2021
QUEEN’S PARK – Haldimand-Norfolk MPP Toby Barrett rose in the Ontario Legislature raising concern of the economic and employment impacts on Haldimand-Norfolk if Enbridge Line 5 pipeline were to close.
On Thursday, Sarnia-Lambton MPP Bob Bailey brought forth a Private Member’s Motion to fight the closure of the Line 5pipeline. MPP Barrett pointed out the Imperial Nanticoke refinery has about 300 full-time employees, and on any given day 200 contractors.
About 25 per cent of the petroleum products sold in Ontario go through the Imperial Nanticoke refinery, and Line 5 is vital to the supply of raw product for that facility. Nanticoke has a variety of essential products: gasoline and diesel, aviation fuel, asphalt, heavy oil and home heating fuel.
“Imperial Oil in Nanticoke has gone through a tough time with the shutdown of the CN Rail line over the past four months between Caledonia and Nanticoke,” Barrett said during his address to the Legislature. “… Enbridge Line 5 plays a critical role in our refining and our petrochemical sector and is a tremendous, tremendous benefit to the Great Lakes region, with a significant volume of crude oil for processing, both by the refinery in my area of Nanticoke and, of course, in Sarnia,” Barrett continued.
Barrett has been in regular contact with officials at Imperial. Although the company is looking at alternate methods of moving petroleum product from the west, it is more expensive for Imperial and, in turn will be for the people of Ontario.
“Although Imperial is watching this situation very closely, they are hopeful there will be no impacts,” Barrett said. “Of course, it is disappointing that the governor of Michigan is willing to jeopardize this key artery that connects North American crude oil to Ontario refineries.
The transportation of unrefined fuels via pipelines is demonstrably safer and faster than by railroad and water. Moreover, Enbridge Line 5 has operated with an unblemished safety record since installation and has been confirmed fit for service by its US safety regulators. In contrast, we know of a number of tragedies that have unfolded in Canada and abroad with respect to the use of rail and road.
Barrett stressed the impact could also affect propane supply.
“We know that 45 per cent of Canada’s propane use takes place in Ontario, and, as has been explained, if we saw such a shutdown there would obviously be a disastrous disruption in fuel supply,” Barrett said. “It would have severe implications for agriculture, for agri-food and our rural and remote communities. In my role as parliamentary assistant to agriculture, food and rural affairs, I can attest that a Line 5 shutdown would have broader impacts for the movement and transportation of primary agri-food, food processing inputs and food and beverage products.”
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For more information, contact MPP Toby Barrett at 519-428-0446 or toby.barrett@pc.ola.org
Video: https://www.facebook.com/100002252157929/videos/3678830225535346/
ONTARIO LEGISLATIVE ASSEMBLY
Official Hansard
Feb. 25, 2021
Mr. Toby Barrett: I’m also very pleased to rise in support of MPP Bob Bailey’s motion that the House take note of the economic and employment impacts of this potential closure of the line 5 energy corridor.
I do wish to stress that the Nanticoke oil refinery is in my riding of Haldimand–Norfolk. It’s a blessing to our community. I have a really good rapport with those who work there, as well as the skilled trades who come in for shutdown. Further, Imperial Oil is an incredible community member, and I’ve had a long-standing working relationship with our local refinery going back to the 1980s. I served as a consultant to that refinery. It was then owned by Texaco, and my work was helping to establish their employee assistance program and to conduct staff training.
By way of background, this Nanticoke refinery down there in Lake Erie has got about 300 full-time employees and an average of 200 contractors a day. The employment positions at the refinery range from engineers; technologists; safety planners; the trades, of course; and administrative staff. Any threat to these good-paying jobs would be devastating to my small-town rural area.
As we know, as we’ve heard during debate, about 25% of the petroleum products sold in Ontario go through the Nanticoke refinery alone. Nanticoke has a variety of essential products: gasoline and diesel, obviously; aviation fuel, asphalt, heavy oil and home heating fuel. As many will know, Imperial Oil in Nanticoke has gone through a tough time with the shutdown of the CN Rail line over the past four months now between Caledonia and the Nanticoke refinery. We’re hoping to see that rail line open up in a few days.
So, Enbridge line 5 plays a critical role in our refining and our petrochemical sector and is a tremendous, tremendous benefit to the Great Lakes region, with a significant volume of crude oil for processing, both by the refinery in my area of Nanticoke and, of course, in Sarnia. And, as we’ve heard, it provides a cost-effective supply of gasoline, diesel, jet fuel and a wide variety of other petroleum products.
I’ve met with Imperial on this issue. They are supporting Enbridge in its advocacy for the pipeline and working closely with the trades to amplify these concerns. They engage regularly with our senior government officials as well as the federal government with regard to the importance of line 5 to Imperial and to southwestern Ontario and beyond.
The goal: to see the operation of the pipeline continue.
However, Imperial’s teams are also required to work on a combination of contingency plans involving marine, rail and truck to help mitigate any potential impact. These alternatives are costlier and really are incapable of replacing the lost pipeline supply.
The transportation of unrefined fuels via pipelines is demonstrably safer and faster than by railroad and water. Moreover, line 5 has operated with an unblemished safety record since installation and has been confirmed fit for service by its US safety regulators. In contrast, we know of a number of tragedies that have unfolded in Canada and abroad with respect to the use of rail and road.
Although Imperial is watching this situation very closely, they are hopeful there will be no impacts. Of course, it is disappointing that the governor of Michigan is willing to jeopardize this key artery that connects North American crude oil to Ontario refineries. Such moves will not only impact Ontario’s energy supply but Michigan’s as well, and as well other jurisdictions. Simply put, line 5 is critical to Ontario’s economy and to that of our neighbouring jurisdictions, also including Quebec and Ohio.
Just to change gears for a minute: We know that 45% of Canada’s propane use takes place in Ontario, and, as has been explained, if we saw such a shutdown there would obviously be a disastrous disruption in fuel supply. It would have severe implications for agriculture, for agri-food and our rural and remote communities. In my role as parliamentary assistant to agriculture, food and rural affairs, I can attest that a line 5 shutdown would have broader impacts for the movement and transportation of primary agri-food, food processing inputs and food and beverage products.
Propane heats homes; it heats livestock barns, especially in rural areas. It powers vehicles like lift trucks, gas grills, generators, and so many other uses within the agricultural industry.
The higher costs of housing livestock and producing food will negatively impact farmers’ incomes and could ultimately be translated into higher prices for food. The Ontario Federation of Agriculture agrees that the line 5 pipeline is critical not only for the agriculture industry but for employment, the cost of living of our citizens, the general economy and ensuring the continued production of thousands of Canadian products that we rely on daily. It’s a vital piece of infrastructure and its importance clearly goes beyond our borders.
Speaker, very clearly, the shutdown of line 5 is expected to make it more expensive to produce food in Ontario. It will impact the ability to heat barns and homes, commercial greenhouses, for example, and livestock facilities. Propane is used to dry crops. We don’t use corn cribs anymore to dry down grain or to power irrigation systems. If grain is not dried, it rots and is useless in food production. It’s difficult to say how much fuel prices will increase for propane, but if you look at what happened in Texas when they experienced a supply disruption, we could see prices that are double or quadruple what farmers and the rest of us could afford to pay.
As we know, a permanent closure of line 5 will lead to an increased reliance on truck, rail and marine transport, leading to higher costs for consumers, growing congestion and increased greenhouse gas emissions, and it will place an unnecessary risk on our communities and on the environment.
Ontario farmers are already dealing with the added stress of the virus. They’re working around the clock to protect the health and safety of their farm workers, and this is yet another burden that would be unfair for them to have to deal with. It’s a food security issue and a sustainability issue with respect to the food supply in the province of Ontario.
In closing, I unequivocally stand with MPP Bob Bailey: The economic and the employment impacts of the potential closure of the line 5 energy corridor will be detrimental to all Ontarians and many who live in Quebec, the states of Ohio and Michigan, and other jurisdictions. From an economic development point of view, this potential closing will lead to significant major disruptions in supply chains, forcing rationing and ultimately driving up fuel prices for all businesses and the average citizen, who is already dealing with the impacts of the coronavirus.
The governor of Michigan would appreciate that the safest way to transport these essential fuels across ecologically sensitive areas like our precious Great Lakes is by pipeline. Permanently closing line 5 would put a burden on alternative transportation systems—again, increased emissions, increased congestion and unnecessary risk. The economic fallout, as has been explained, is not limited to southern Ontario and would impact the Great Lakes region. This would be unpalatable in ordinary circumstances, but especially so right now. It would be unconscionable to allow this closure in the current economic climate.
This is a top priority. We continue to work with our federal counterparts to protect people and our economy, and I think it’s safe to say that our government stands ready to support the federal government in any way necessary to ensure that this vital infrastructure remains operational for the benefit of all. Given the seriousness of the situation, it’s clearly time for all of us to reach out. I’ve written a letter to the governor of Michigan, as many have in this House. We’re allies; they’re our best neighbours. Let’s work together on this.