- The NGTL natural gas pipeline, owned by TC Energy (TSX:TRP), ruptured and caused a wildfire 40 kilometres northwest of Edson, Alberta, late Tuesday morning
- The fire, which reached up to 10 hectares, is now contained, with multiple investigations underway
- TC Energy provides exposure to a network of natural gas and crude oil pipelines, as well as numerous nuclear power facilities
- TC Energy stock (TSX:TRP) is down by 24.45 per cent since 2019
The NGTL natural gas pipeline, owned by TC Energy (TSX:TRP), ruptured and caused a wildfire 40 kilometres northwest of Edson, Alberta, late Tuesday morning.
According to a statement, the company was notified of the incident at 11 am MT, when it engaged in emergency response to shut down the affected section of the pipeline. It managed to contain an initial fire caused by gas ignition and was working to contain a second fire with the help of Alberta Wildfire as of 7 pm MT.
No injuries were reported, though certain customers were temporarily affected while the rupture was isolated. The remainder of the 24,631-km pipeline is operating normally. NGTL transports natural gas from Alberta, B.C. and the broader Western Canadian Sedimentary Basin across domestic and U.S. markets.
Though commercial losses appear to be minimal, Charlotte Charbonneau, area information co-ordinator with Alberta Forestry and Parks, confirmed the wildfire to have reached 10 hectares as of mid-Tuesday afternoon. No communities were affected, given the remoteness of the area, with a dozen firefighters on site set to continue containment work Wednesday morning.
In a statement posted late Tuesday, Yellowhead County confirmed there was no longer a gas leak, and the public was not at risk. It is investigating the issue, having determined there was pipeline involvement. The Transportation Safety Board of Canada and the Canadian Energy Regulator have also sent agents to investigate and oversee TC Energy’s remediation effort.
With TRP stock down by 24.33 per cent since 2019 to C$48.66 per share – primarily because of the company’s high leverage, volatile earnings and lack of low-carbon initiatives, in addition to a tepid response to a spin-off proposal – investors in TC Energy may be in for more pain in Wednesday’s trading session.
The news follows a 14,000-barrel oil spill from TC Energy’s Keystone pipeline in Kansas in December 2022, the worst in the pipeline’s history, which includes more than 20 separate incidents totaling more than 26,000 barrels and more than US$111 million in property damages.
About TC Energy
TC Energy provides exposure to a network of natural gas and crude oil pipelines, as well as numerous nuclear power facilities.
TC Energy stock (TSX:TRP) opened with a gain of 0.12 per cent, trading at C$48.66 per share.
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