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Petroleum Products Division
The Petroleum Products Division (PPD) of the Department of Community and Government Services, Government of Nunavut, oversees the import, storage, and distribution of fuel products in Nunavut. Its key responsibilities include:
Procurement and Sales: Purchase, import, and sell refined petroleum products in compliance with financial regulations and operational plans. Meet the evolving needs of Nunavut communities by arranging storage and delivery of products.
Outsourced Service Providers: Select, manage, and train outsourced service providers responsible for transportation, distribution, and supply of refined petroleum products. Ensure effective fulfillment of contractual obligations.
Infrastructure Operations: Operate, maintain, inspect, and develop fuel storage and distribution infrastructure in Nunavut. Adapt to emerging community requirements, adhere to strict maintenance schedules and regulatory compliance, and address operational needs unique to an Arctic jurisdiction.
Environmental Management: Responsibly handle environmental hazards or spills in accordance with regulations. Manage land farms for storing and remediating materials contaminated by petroleum hydrocarbons. Provide contractors with training on environmental safety, protection, and sustainability practices.
Through these responsibilities, the Petroleum Products Division contributes to the efficient and sustainable management of refined petroleum products in Nunavut. It ensures the needs of communities are met while maintaining environmental safety and compliance.
PPD was formed in 1972 to distribute petroleum products in the Northwest Territories. In 1994, the headquarters of PPD were moved from Yellowknife to Rankin Inlet where the head office remains today. In 1999, the responsibilities of PPD were transferred to the Government of Nunavut.
In 1999, PPD imported 110 million liters of fuel for Nunavummiut. Today, PPD imports approximately 215 million liters of fuel, representing an annual growth rate of approximately 4.5%.
PPD operates in accordance with the Revolving Fund Act, which establishes a comprehensive framework for the secure, cost-effective, efficient, and dependable procurement, transportation, storage, distribution, sale, and supply of refined petroleum products to residents of Nunavut communities.
To facilitate these operations, the Petroleum Products Revolving Fund (PPRF) serves as a financial mechanism. Similar to a commercial line of credit in the private sector, the PPRF provides the necessary financial resources to procure and distribute fuel consumed annually in Nunavut communities. It offsets PPD's expenses through the revenues generated from the sale of petroleum products.
The PPRF offers working capital advances for various purposes, including inventory, accounts receivable, operating expenses, and applicable taxes. Its authorized limit is set at $250 million, representing the maximum allowable assets exceeding liabilities. As mandated by the Act, PPD is responsible for recovering the advances from the PPRF through retail sales.
While the Act requires the PPRF to operate on a "break-even" basis, recognizing the volatility of oil and refined petroleum product prices, the Petroleum Products Stabilization Fund (PPSF) was established. The PPSF serves to minimize the need for annual fuel price adjustments due to market fluctuations. It has a limit of +/- $20 million, and if this threshold is surpassed, the Government of Nunavut (GN) must provide additional funding through a supplementary appropriation. The PPSF acts as a mechanism for consolidating the profits and losses of the PPRF, functioning akin to a retained earnings account found in the financial statements of private sector companies.
PPD is entrusted with a comprehensive range of responsibilities concerning the purchase, importation, marine transportation, delivery, storage, and sale of petroleum products in Nunavut. The Division is involved in various stages of the supply chain, ensuring efficient operations from bulk purchase to final delivery. PPD's key functions include:
· Supervising Nunavut's annual bulk fuel supply.
· Managing the distribution of fuel to each community.
· Owning, operating, and administering bulk fuel storage facilities in every community.
· Awarding and managing local fuel delivery contracts.
The Petroleum Products Division (PPD) procures Nunavut's petroleum products through a supply and transportation contract with Av Nunavut Fuels and Woodward's Oil Limited (Woodward's). These fuels are primarily obtained from refineries located on the East Coast of Canada, the United States, or occasionally from overseas countries like Finland or Japan.
PPD follows a practice of locking in prices for its fuel purchases during the winter months, prior to the upcoming resupply season. This is accomplished using "Futures Contracts." Under these contracts, PPD directs the supplier to enter into agreements with commodities brokers, which enable the locking in of prices and the subsequent physical delivery of the fuel later. These
agreements serve two purposes: ensuring the availability of winter-grade fuel specifications during regular production cycles and achieving cost savings.
|Automotive Diesel||3.517-2007||Low Temperature Operability - Cloud Point -43◦C
Electrical Conductivity - 100pS/m minimum @4◦C
Cetane - must meet the engine ASTM D613 engine test
|Automotive Gasoline||3.5-2011 Amendment No. 2||Grade 3, Class D
Antiknock Performance - minimum 92
Vapour Pressure - minimum 95kPa
Oxygenates - No alcohols, MTBE or other oxygenates allowed
Amendment No. 2
|Type - Jet A-1
Electrical Conductivity - minimum 250pS/m minimum @4◦C
In Nunavut, bulk fuel facilities play a crucial role in ensuring a reliable supply of fuel during the winter months. These facilities are designed to store large quantities of fuel to meet the energy needs of the communities. The storage tanks are constructed with specialized materials to withstand extreme Arctic temperatures. Stringent maintenance schedules and regular inspections are followed to ensure the integrity and safety of the storage infrastructure. Fuel is delivered to the facilities via oceangoing vessels during the summer months when waterways are open. Adequate inventory levels are maintained to mitigate supply disruptions caused by harsh weather conditions. This careful management of bulk fuel facilities ensures a steady and dependable fuel supply throughout the challenging winter season in Nunavut.
Fuel prices in each community of Nunavut are determined by the Financial Management Board, considering various factors such as actual product cost, transportation expenses, operational and maintenance costs, as well as product subsidies. The retail prices are typically established on an annual basis, often coinciding with the annual resupply operations.
The most recent Retail Price List was introduced across all Nunavut communities on April 1, 2023. This update in retail pricing was prompted by changes to the federal carbon tax rate.
To access the PDF file containing the latest Retail Price List, you can click here.
Fuel purchases in each community can be made by residential or commercial customers through local contractors, either with cash or on credit with the Petroleum Products Division (PPD). To apply for a PPD credit account, interested parties should complete the Credit Application Form [A14]. Additionally, a deposit is required, which can be submitted through a personal cheque, money order, or credit card authorization form available at the bank.
The deposit amounts are as follows:
Residential Account Deposit: $300.00
Commercial Account Deposit: $1000.00
The completed application and deposit should be sent to the PPD Headquarters at the address below: PPDRevenue@gov.nu.ca
Upon approval of the application, applicants will be notified, and an account will be created. It may take several weeks to process the applications. In the event of a credit application denial, the deposit will be returned. Approved credit customers will have their deposit held until an acceptable credit history is established (approximately 3 months of timely payments) or until the account is closed by the customer.
PPD ensures the appropriate response and clean-up of spills associated with the storage and transportation of petroleum products across Nunavut. This involves monitoring and managing spill response by fuel contractors
throughout the territory to safeguard Nunavummiut's safety and protect the environment.
Community-specific response plans have been developed and distributed to all communities in Nunavut. These plans adhere to regulations set by Environment Canada, Transport Canada, the Canadian Coast Guard, and the National Response Plan frameworks, providing guidance to contractors and individuals involved in spill response.
Each community maintains spill response equipment, managed by local fuel contractors, including absorbent pads, booms, protective gear, and hazardous substance disposal bags. The Canadian Coast Guard also has spill response equipment available in numerous communities, accessible through the regional PPD office or the RCMP.
In the event of an emergency spill incident, Nunavummiut are urged to contact the 24-hour spill line operated by the Government of Northwest Territories.
The attached form (NT-NU Spill Report Form 2016.pdf) should be completed and sent to the spill line, providing comprehensive details for regulatory agencies to facilitate their response. Additionally, the local fuel contractor and PPD regional office should be notified.
Please note that PPD is not responsible for individual homeowner fuel spills or GN departmental spills. However, PPD can offer guidance and support if assistance is needed.
Contact the Petroleum Products Division:
Phone: (867) 645- 8400
Kivalliq Regional Office
Head, Kivalliq Regional Operations Phone: (867) 645-8430 Emergency: (867) 645-6526
Kitikmeot Regional Office
Head, Kitikmeot Regional Operations Phone: (867) 983-4135 Emergency: (867) 983-5069
Baffin Regional Office
Head, Baffin Regional Operations Phone: (867) 899-7308 Emergency: (867) 899-1422