B.C. greenhouses face steep heating bills after pipeline explosion

Costs skyrocketed after the blast choked off natural gas supplies.

Some Langley greenhouse owners are getting hammered by sharp increases in natural gas prices caused by the pipeline explosion near Prince George.

“It’s brutal,” said Lawrence Jansen, CEO of Darvonda Nurseries.

In early October, Darvonda was paying about $3.50 per gigajoule of natural gas.

But after the Oct. 9 pipeline blast, the supply to the Lower Mainland was reduced. While Fortis encouraged homeowners to take shorter showers and to turn down their thermostats, some greenhouses saw energy prices skyrocket.

Within a day, the price at the Northwest Sumas gas hub had shot up to more than $10 per gigajoule. In late November, it was above $25 on several days, and on Nov. 16 it was $86.70.

Darvonda bought gas at lower, “interruptible” rates, which means they were vulnerable to sudden shifts in price.

That has meant some major changes for Darvonda and some other local nurseries.

READ MORE: B.C.’s natural gas supply could see 50% dip through winter due to pipeline blast

At Darvonda, a four-acre greenhouse full of cucumber plants should have been harvested for a week and a half more. But the gas price made it too unprofitable, and Jansen said they shut it down, losing about 50,000 cucumbers.

“We had to move a lot of our plants to a different facility, that has fixed [natural gas] rates,” Jansen said.

Local natural gas, “downstream” of the pipeline rupture, has had to come through a 30 inch, older pipeline instead of a 36 inch pipeline, said David Grewal of Absolute Energy.

“That has constrained supply significantly,” he said.

The huge price spike on Nov. 16 was caused by maintenance on the pipeline.

It’s simply a bottleneck in supply, said Grewal.

Darvonda has also reduced heat in the greenhouse where its poinsettia plants are waiting to be shipped out to stores, and at its annual GLOW seasonal light show.

“We’re amazed at how fragile the whole system is,” said Jansen.

Even greenhouses that don’t rely on natural gas for heating are feeling the impacts second-hand.

“The month of November has been mild enough that our biomass boilers have been enough,” said Leo Benne of Bevo Farms.

Bevo supplies new seedling plants for many other greenhouses, and Benne said their clients are seeing shortened growing periods, or considering starting crops later.

That could affect Bevo – some clients are looking into when they’ll order their plants in the new year.

“So far, we’re making it work,” said Benne.

Meanwhile, Darvonda is still growing tomatoes and planning for next year. It’s tempting to switch to buying gas at locked-in prices, but buyers can’t switch immediately, Jansen said.

For now, they’re using as little natural gas as possible.

“We’re probably using less than half what we would normally use,” he said.

_________________________________

Is there more to this story?

mclaxton@langleyadvance.com

Like us on Facebook or follow us on Twitter

_________________________________

 

Just Posted

Brother of Chilliwack homicide victim killed in Surrey on Remembrance Day

Andrew Baldwin shot on Nov. 11, three weeks after Keith Baldwin shot in downtown Chilliwack

Volunteer organization provides first aid and rescue services

Main fundraiser, the Winter Extreme Ski and Board Swap, takes place at Abbotsford Exhibition Park Nov. 16 and 17

Highway 1 crash in Langley slowing traffic

Accident happened at 232nd Street and has left one car on the right shoulder

Variable speed limit system coming for Highway 3 near Hope

Congestion based system in testing phase between Chilliwack and Abbotsford by early 2020

UPDATE: Coquihalla now open north of Hope

Accident happened earlier this afternoon

VIDEO: B.C. to restrict nicotine content, bring in 20% tax on vaping products

Province will also restrict candy and fruit flavoured vaping products to adult-only stores

B.C. government working with RCMP to address $10 million in budget cuts

Public Safety Minister Mike Farnworth issues statement following report of RCMP cost-cutting

UPDATE: Metro Vancouver bus drivers to refuse overtime as transit strike escalates

Overtime ban could disrupt 10-15 per cent of bus service in Metro Vancouver

‘City that protects rapists’: Sexual assault survivor slams Kelowna mayor for defending RCMP

Heather Friesen spent the morning handing out flyers around city hall calling out the mayor

South Surrey man and city settle beef over backyard cow

Asad Syed, who kept a calf on his property last year, met City of Surrey in court Tuesday

Batten down the hatches: Wet and windy weekend on the way for coastal B.C.

Environment Canada issues special weather warning for Lower Mainland, Vancouver Island

BC Liquor Stores to move fully to paper bags by March

Vancouver Island to be the first to convert to paper bags in November

Tolko shuts B.C. divisions for two weeks over holidays

Head office to close from Dec. 23-27; two weeks’ downtime runs Dec. 21-Jan. 6

Port Moody mayor says stayed sex assault charge related to ‘awkward date’

Rob Vagramov said charge was related to a string of dates in 2015

Most Read