- Maintenance: It could be very difficult to find and fix a fiber break. AFAIK, there's no easy way to determine where a break in the fiber is, you generally end up replacing the entire broken segment, which in this case could be miles.
- Reliability: If the fiber breaks, all the upstream sensors go down. Especially since a fiber break could also mean a pipeline break, you just handicapped yourself at the most critical time.
- Cost: Hundreds of miles of fiber, properly shielded from the elements, must cost a lot. (Of course, getting wireless signal to thousands of sensor stations would also be pricey, and I can't say how they'd compare.)
They list the maximum range as 100 Km, with accuracy of +/- (0.8 m + 0.001% x Distance). So measuring to a break at maximum range, you'll be within 1.8 meters.
IIRC, the materials cost for building long haul fiber is a couple dollar per meter or less, especially in China.
If you're already building a massive structure like a canal, embedding conduits into the infrastructure is a tiny marginal cost. And Fiber maintenance is very, very low in protected environments (such as the electric-fence protected canal).
Not only that, you could easily build two conduits, one on each side of the canal, creating route diversity.
So for laying hundreds of miles (let's say 1000km) of fiber where construction is already happening, the total cost would be a few million USD.
I'm not saying don't have some other way of transmitting data...just rather than worrying about "how do we relay connectivity between senors using a wireless protocol", and/or "How do we connect sensors that aren't in cell coverage areas to the broader internet", fiber can be used to connect sensors in relays. Put a cellular chip every 10 miles, say, and then connect those, with sensors, with fiber. So basically cell chip -> sensor -> sensor -> ... -> cell chip -> repeat. Any single split of one of those 10 mile stretches, and you have lost nothing (as communication can still go the other way, that is, the sensor north of the split can still send data north, the sensor south of the split can still send data south, say). And you know where the split happened.
"Workers will just cut the fiber" - err, really? I assume installing oil pipelines, given the mechanical complexity of it, involves more than just sticking it together and welding it shut (and removing it involves more than just slicing it open and dropping a new one in its place). An extra step or two to ensure the fiber line is properly hooked up hardly seems any more complex than what they're already doing.