Industry Veteran Retires, Leaves Legacy of Win-Win Solutions

When Andy Ronald was recruited by Inergy in July 2002 to manage supply for its retail propane operations he wasn’t a newcomer to the energy industry. Ronald already had 33 years of experience, mostly in propane at Shell and later with Enterprise. As Inergy grew rapidly, the supply leadership responsibilities were divided into three regions: West, Mid-continent, and East. Ronald took over the East region as it was the most problematic, with constant supply shortages and long-leads being the norm.

During this time, Inergy’s retail division had one rule: never run out of gas. From July 2002 to August 2012, when Inergy was sold to Suburban Propane, under Ronald’s leadership the company achieved that goal. There were a few close calls, perhaps, but it never ran out.

Following the merger with Crestwood in 2013, Ronald took over relationships with national accounts for Crestwood. He then spent the next few years developing four successful rail terminals before retiring from Crestwood at the end of 2017. Recently, BPN discussed with Ronald his career accomplishments as well as activities he directed that will continue. A pattern of his mobilizing different people to achieve win-win solutions through 48 years in business, as well as philanthropy, is evident.

Two of Ronald’s key career achievements came during his time with Shell, when he initiated the establishment of index pricing on the TEPPCO Pipeline in 1989 and on the Dixie Pipeline. These were considered game-changing initiatives in the wholesale propane supply world since standard pricing had formerly been the posted price with a discount. The concept of changing the formula for pricing was done as Shell dramatically ramped up the volume of propane available in the Gulf, and didn’t want all the offshore production to be sold in its entirety to petrochemical plants in Louisiana when it could benefit several tiers of pipeline assets.

“The concept of index buying created more benefits for the retail propane marketers who could lock in a constant, agreed-to price over where Mont Belvieu was trading and know they had a guaranteed margin with hedging tools in place at Mont Belvieu,” Ronald said. “This gave retail propane marketers more flexibility to protect margins and allowed Shell to commit more gallons beyond the petrochemical market. Soon, other companies followed the lead and began to offer index pricing.”

In 2009, Ronald began his tenure as chairman of the National Propane Gas Association’s (NPGA) International Committee, now the Propane Supply and Logistics Committee, as historic changes were taking place with dramatic increases in natural gas and propane production in the Marcellus shale. “A number of people didn’t think the increased production would happen, just like many once thought Detroit would never create cars that ran on unleaded fuel,” he commented. “During the time chairing this committee, we started educating the industry about the changes taking place and helped them understand how they would be affected.”

Ronald played a leading role in the propane industry’s response to severe supply and logistics constraints during the challenging winter of 2013-2014. In January 2014, at the height of the crunch, he was instrumental in initiating an industry strategy with the Federal Energy Regulatory Commission (FERC) to quickly move 350,000 barrels of propane from the Gulf Coast to relieve a severely short market in the Northeast and Mid-Continent. “This was accomplished over a weekend through joint efforts of key industry leaders, NPGA staff, and industry contacts. Through a series of phone calls during this urgent supply shortage we were able to arrive at a solution that worked for all. It was the first such FERC exemption of its kind, but it set a precedent, and resolutions to future supply situations should happen faster.”

Several months later, Ronald presented the industry’s viewpoint on infrastructure needs relative to propane demand in the Northeast at a hearing for the U.S. Department of Energy’s Quadrennial Energy Review. He highlighted the changes needed to support cost savings for the consumer by using U.S. production, particularly new shale gas production, versus higher-cost imported product. He was also able to use this testimony to highlight the importance of Crestwood’s Finger Lakes storage project to reduce dependency on imports.

In June 2014, the NPGA Board of Directors named Ronald to the Finance Committee. He was later appointed to chair an industry group tasked with allying with the Surface Transportation Board (STB), which regulates the railroad industry. “This rail advocacy task force provides resources for NPGA members with rail shipping issues,” Ronald explained.

In addition, the strong knowledge gained earlier in his career of the rail propane delivery process led to several projects that Ronald enjoyed immensely over the last five years—the oversight from concept to completion of four successful Crestwood railroad terminals: Davisville, R.I.; Rose Hill, N.C.; Peekskill, N.Y.; and Montgomery, N.Y. (BPN, October 2017, p. 22). The Mongomery terminal is believed to be the largest propane rail terminal in the U.S (shown above).

“It has been very rewarding to work with people who said to go ahead and do it and supported me every step of the way,” Ronald said of his Inergy and Crestwood colleagues. “With the rail terminals there were plenty of roadblocks and challenges with planning and zoning boards and others. Montgomery was perhaps the most complex real estate deal ever and it wouldn’t have happened without the level of trust I enjoyed from Crestwood leadership.”

Looking back, Ronald very much appreciates the friendships and support he has had from the propane industry. “I was fortunate to work in an industry where I had a real passion,” he said. “I knew right away in my career in gas liquids I didn’t want to do anything else.” He also appreciates his wife and family for tolerating his frequent travels to make his projects come to fruition.

One more win-win situation Ronald spearheads with much support from propane industry friends benefits U.S. troops in places such as Afghanistan and other locations around the world. Named for Ronald’s long-time friend, Wally Bostwick, one of the 10 most-decorated U.S. soldiers in Vietnam, the Wallace R. Bostwick Memorial Fund delivers holiday gift packages to troops based in the Middle East. This honor for the man who he considered a best friend, and the best man at his wedding, is designed to provide gifts and moral support to troops, recognizing their sacrifices as they labor miles from loved ones and absent life’s pleasures back home. “By 2017, over 6000 gift boxes had been sent to the troops,” he said. “Over the years, we’ve come up with a more cost-effective approach to be able to pack and ship more boxes. We’ve also enlisted school kids to decorate the boxes. This brings more cheer to the troops while also teaching the kids about the sacrifices the troops make to ensure our freedom and way of life.” Ronald is also well known for spearheading an annual barbecue for bicycle riders and their supporters who participate in Kansas City’s annual Bike MS event to benefit multiple sclerosis.

Although retired, Ronald remains involved in the propane industry. He stays in close touch with the Crestwood team and is working with others in the industry who seek his help with wholesale supply planning. He will also continue to be involved with NPGA. Most importantly, he will be able to spend more time with family while still staying in touch with long-time industry friends and the work he has enjoyed. “Overall, family and friends are the most important part of well-being in life. I’ve been blessed with both and look forward to the next chapters in my life.”

—Pat Thornton