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COUNTRY LIFE IN BC • DECEMBER 2018
Pipeline explosion creates uncertainty Higher input costs, smaller crops among the potential effects on greenhouse operations
by SEAN HITREC
SURREY – A recent natural gas pipeline explosion and prolonged reduction in distribution capacity has left greenhouse growers with tough choices as they plan next year’s crop. “We've delayed the crop,
basically, for next season,” says Sunnyside Greenhouses Ltd. owner Jos Moerman. “We will plant 40% of normal and for the rest, we will hold off until we find more clarity about when the gas line will be fixed.” The bigger of two Enbridge-owned pipelines that supply the Fraser Valley
and Lower Mainland exploded near Prince George on October 9. By the end of the month, the line was patched but capacity remains at about 80%. This has pushed natural gas prices to extremely high rates. At press time, prices were
expected to hit $95 per gigajoule. When prices spiked in 2001, they peaked at around $13.50 per GJ. This compares to a normal price of $3.50 per GJ. Growers fear the worst could be around the corner as the National Energy Board still needs to assess the damage, and low flows have prompted
companies to urge consumers to reduce use to conserve supplies. BC greenhouses rely on natural gas for heat and clean carbon dioxide, which feeds plants during photosynthesis. Alternative fuels, such as diesel and wood burners, are costly and emissions are too dirty to feed plants. Growers now face a
gamble, says BC Greenhouse Growers' Association executive director Linda Delli Santi. Higher natural gas prices mean if a grower decides to plant, there’s a chance the crop will cost too much to produce.
“The members are all sitting back now and trying to make their own decisions on how much risk they're prepared to take,” she says. “I've had a couple say that they didn't want to plant at all and the rest of them are pushing back their planting date anywhere from six weeks to possibly three months.” The last two months of the
year is when greenhouses typically clean the production area and order seedlings from propagators. The new plants arrive four to six weeks later, explains Delli Santi, ready to take advantage of the longer days and increasing solar energy that follows the winter solstice. “You're setting up a good,
strong, healthy plant to make it through the whole year,” she says. “If they plant later, there might not be a long enough growing season to recover their costs of production.” That’s what’s happening
this year, as growers hold off ordering because of uncertainties around natural gas prices. Yet price is only part of the
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issue. Interruptible service with FortisBC is purchased at a cheaper rate for greenhouse growers, with the caveat of curtailment. Ken Fuhr, sales purchasing consultant at Independent Energy (BC) Consultants, says even when pipelines are at 100%, the flow barely services the Lower Mainland’s growing
population, let alone industry demand. Fuhr says the
reduction in flow means interruptions for greenhouses are likely to happen more frequently. “Let's say we do get a cold snap; what those greenhouses are risking is that Fortis says, ‘We want you completely off gas,’” he says. “Cold weather events can last 10 days, so they could be told, ‘We don't want you buying any gas for the next 10 to 12 days.’ It has that possibility.” Further, Fuhr says because the explosion happened in October, if the NEB comes back with problems that need fixing, they’re going to have to wait until the ground thaws in spring to get started on repairs. “If it happened in April, you could deal with it over the course of the summer,” he says. “We're going into peak of winter here and they won't be able to do anything about it.” Fuhr recommends
greenhouse growers wait until January to see what happens before investing in a new crop. “When there's uncertainty,
take the conservative view and plant a month later,” he says. At the end of the day, this means less greenhouse vegetables will be produced in BC and likely at a higher cost. It will be difficult to recoup losses, because global markets set the price BC growers receive and don’t take a pipeline explosion in the BC interior into consideration.
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