VANCOUVER, Sept. 19, 2014 /CNW/ - The international system of bidding
for oil used by companies using the Kinder Morgan Trans Mountain
Pipeline is being abused, according to documents filed today with the
National Energy Board (NEB). Unifor says the abuse creates a
disadvantage for Chevron's Burnaby refinery, threatening good Canadian
"Yet again, Canada's natural resources are being taken advantage of by
foreign firms, and the government is doing nothing to stop it," said
Joie Warnock, Unifor's Western Director. "When is the government going
to put Canadians first?"
Several oil companies receive a share of the oil product that is shipped
from Alberta through the Trans Mountain pipeline. They undertake a
monthly bidding process for the amount of oil they can take.
In evidence submitted to the NEB, Unifor demonstrates that larger
American refineries bid for vastly more oil than they need. This
over-subscription to the pipeline squeezes out smaller refineries, who
then may need to buy oil from the over-subscribed firms at inflated
Unifor estimates that 75% of the Trans Mountain flow already goes to
foreign markets, putting BC consumers at risk.
"If the government doesn't step in, the Kinder Morgan pipeline will
become a pure export pipe," said Russ Day, Unifor Local 601
Secretary-Treasurer at the Burnaby refinery. "Our natural resources
should create long-term Canadian jobs and meet Canadians' energy
The Burnaby refinery supplies between 30%-40% of the petroleum products
in BC's Lower Mainland.
Unifor was founded Labour Day weekend 2013 when the Canadian Auto
Workers and the Communications, Energy and Paperworkers unions merged.
With more than 305,000 members, Unifor is Canada's largest union in the
For further information:
please contact Unifor Communications Representative Ian Boyko at 778-903-6549 (cell) or Ian.Boyko@unifor.org