It’s a no-go for latest Nunavut tanker load

A tanker carrying 16 million litres of diesel and jet fuel was sent back to Montreal last week after testing showed the fuel was possibly sub-standard.

The Government of Nunavut and Shell Canada had good reason to act: that’s because they’ve each been burned financially by recent shipments of bad gas.

Since 2001, GN has paid out more than $1 million for vehicular damage caused by bad gas.

Still, Denita Davis, a spokesperson for Shell Canada, said refusing a tanker of fuel is a “rare occurrence.” She couldn’t recall any other time when such a thing had happened.

Tom Rich, the GN’s deputy minister of community and government services, said “inconsistencies” were found in the refused fuel by independent testers who now sample and analyze Nunavut-bound fuel when it’s loaded in the South and before it’s off-loaded in the North from tankers.

The diesel fuel showed high sulphur levels and the Jet A-1 fuel was found to have a higher-than-allowable levels of electrical conductivity, which means it could be more flammable than normal.

Rich said Shell and the GN decided not to offload the fuel, because it couldn’t be brought up to par by additives. The fuel was shipped back to Montreal at Shell’s expense, where it will be returned to a refinery for re-processing.

A new shipment will arrive by the end of this month.

“There should be sufficient fuel to tide us over. Obviously, we’ll watch this closely and monitor the situation,” Rich said.

Rich deemed the fuel’s refusal as an “unfortunate thing,” but he said ” it does show our testing program works.”

Since the crisis of 2001, when batches of bad gas arrived undetected in many communities, the GN has bolstered its testing program and broadened the range of tests performed on all incoming fuel.

“The safety and security of the fuel supply are critical matters to us,” Rich said.

Nonetheless, a shipment of bad gas slipped by last year, clogging snowmobile spark plugs in Pangnirtung, Sanikiluaq, Cape Dorset and in the Kivalliq communities.

The GN is set to announce a compensation package involving fuel vouchers to cover damages caused by last year’s bad gas.

The Tuvaq, the tanker sent back to Montreal on June 29, is operated by Woodward group of Labrador. This tanker is under investigation by Transport Canada for a fuel spill, which occurred last year in Pond Inlet.

Rich said Woodward has made changes to its handling procedures since Transport Canada laid four charges against the company in connection with oil spills against a subsidiary of the company.

The next challenge facing the GN and Shell Canada will be to finalize negotiations on a price for this year’s fuel.

The impact of rising global oil prices means each tanker-load will cost much more than last year – a price increase that is likely to be passed on to Nunavut consumers in the fall.