BC Ferries heading toward $1.3 billion fuel supply deal, likely with US-owned company

BC Ferries is in the final stages of awarding a fuel supply contract worth at least $1.3 billion, likely to Sunoco LP, a Dallas-based subsidiary of Energy Transfer LP, according to reporting by The Tyee. The utility has not publicly announced the RFP results, and a BC Ferries spokesperson said in a statement that "contract finalization and approvals are underway."

The contract covers up to eight and a half years beginning October 1, covering fuel costs that run approximately $150 million annually and are expected to rise. BC Ferries' current supplier is Parkland Corp., which has provided fuel for many years but was sold last year to Sunoco LP for US$9.1 billion. Sunoco is controlled by Energy Transfer LP, co-founded by Kelcy Warren, a major financial supporter of President Trump.

The deal carries political weight. Premier David Eby launched BC into a snap election last week and has repeatedly spoken about government entities, including BC Ferries, buying from Canadian suppliers. At a September 18 speech to the Union of BC Municipalities convention in Vancouver, Eby said he would direct BC Ferries to ensure the next generation of vessels are "built right here in British Columbia." He cited the ferry system's shift to sourcing 100 per cent of eggs and 60 per cent of food from BC suppliers as evidence of local procurement priorities.

Sunoco's acquisition of Parkland resulted in layoffs of hundreds of Canadian employees, including many senior managers. BC Ferries has not confirmed the successful proponent or responded to questions about procurement from a US-controlled company.