You may be having a legit but, and if so I apologize, but there is a max limit to the length of your oil line (6-7 patches). The southern one you need to direct the line THROUGH the fence, because the fire will chain through it even if you can't walk through. Welp I'm in the same situation, I did try to make the line through the fence but the fire get stuck on the fence. It's frustrating and irritating, it's the only step that I'm missing to continue the story =/