Inside the Recent Midwest & Mid-Atlantic Propane Supply Disruptions

In November 2025, the Midwest and Mid-Atlantic regions encountered two separate incidents involving pipelines operated by Enterprise Products and Energy Transfer Products respectively that have led to significant propane supply disruptions. The Mid-America Pipeline, operated by Enterprise Products, experienced a leak in Kansas on Nov. 27, and was soon repaired on Dec. 3. 

At the Energy Transfer Partners-operated Marcus Hook Terminal, an electric transformer disabled the site’s propane truck-loading rack for three days and created enduring problems that impacted Energy Transfer’s ability to pump propane properly. 

Supply issues are a challenge to manage during any time of the year, but this is especially true during the industry’s busy cold months. To learn more about these disruptions — and the resources available to propane suppliers — BPN reached out to J.D. Buss, president of Westlark Advisors. 

Additionally, in a special Q&A section, readers can hear from Benajmin Nussdorf, senior vice president of regulatory and industry affairs at the National Propane Gas Association (NPGA), on how NPGA provided immediate and ongoing support in the wake of these challenges. 

Buss: Two of the major logistical issues impacting supply this winter, Marcus Hook and the Mid-America Pipeline, have already been discussed in many news outlets. What may be more impactful at this juncture will be to discuss some of the impact and how to manage these — and other types — of logistical challenges. 

Reduced terminal access at Marcus Hook and disruptions on the Mid-America Pipeline impacted most of December and early January for the Eastern and Midwest regions of the country. Some of the results of these items were higher spot supply prices within the region and elevated rail prices at origin points as far away as Alberta, Canada. These were also contributing factors to hours-of-service waivers and stretching transportation assets across a large section of the Eastern U.S. Finally, terminals in different regions also saw an increase in traffic as distributors sourced some product from hundreds of miles away. 

We call these logistical challenges because North America is currently awash in propane. However, that propane mainly exists in locations meant to serve the international markets, not the domestic markets. This shift in product placement over the past 10-12 years forces distributors to make different choices. 

One of those choices is to invest in additional storage. This could take the form of an additional bulk tank, transport assets, purchasing third-party underground storage capacity and even increasing the number of tank monitors in the field. All of these choices can expand a distributor’s asset reach and allow them to ultimately have more propane available when needed. 

The Role of Industry Associations 

Buss: By the time this article prints, the two major logistical challenges for the U.S. this winter will be resolved — resolved through repairs, allocation practices and distributors simply buying from other locations. But another key part of resolving these challenges is both the regional and national efforts of our industry associations. 

Hours-of-service waivers have been vital this winter (as in many past winters) to allow transports more time to secure product and deliver to distributors. Regional associations help communicate this need to the states while NPGA assists with communication to the Federal Motor Carrier Safety Administration (FMCSA) to secure broader waivers. 

When this winter rests in the rearview mirror, there will come many questions about how to avoid these challenges in the future. My advice: You cannot prevent every challenge. In fact, every year it seems the challenges change. So, what can you do? 

Preparing for Ever-Changing Supply Challenges 

Buss: Invest in the infrastructure of your business. This could take the form of storage tanks, trucks, more personnel, tank monitors, analytical software and more. Expanding a distributor’s storage and improving efficiency are great ways to prepare for winter logistical challenges. 

From a supply standpoint, we would also encourage each distributor to make sure they have a diversified supply portfolio. Diversification in locations, suppliers, modes of delivery and more will provide another strategy for distributors to better weather some of the unexpected future challenges. 

Logistical challenges will always exist. Investing in your company’s own infrastructure and being flexible to modify your plans will help you ‘weather’ these challenges in the future. 

NPGA Q&A 

1. Can you give some background info on the recent supply disruptions? 

Nussdorf: Enterprise’s Mid-America Pipeline encountered a leak in Kansas, affecting the eastern leg of the system. The repair of the pipeline was fixed within a week and was in operation two days following repairs due to delays with inspections from the Office of Pipeline Safety from the Pipeline and Hazardous Materials Administration. The eastern leg of the pipeline was on allocation through the month of December. Energy Transfer Partners’ terminal at Marcus Hook, Pennsylvania, suffered an electric incident, leading to the impairment of pumps moving propane from storage at the facility to its propane truck-loading rack. [At the time of publication], the incident has yet to be fully repaired. The terminal declared force majeure and is on allocation and is loading propane directly from the pipeline, which pumps at a lower pressure. The truck rack is unavailable at certain times of day, which the terminal publishes. The problem remains at issue with no resolution date known. The result of both incidents are significant supply disruptions in the Midwest as well as the Mid-Atlantic — and as a consequence of winter weather, New England. 

2. What resources are available for suppliers & marketers when the supply chain is disrupted, especially during cold months? 

Nussdorf: Suppliers and marketers can shift to alternate supply points along the pipelines, utilize rail resources or source propane from greater distances. FMCSA authorized a two-week emergency regional waiver, which began on Dec. 12, 2025, and ran through Dec. 26, providing hours-of-service relief to suppliers and marketers who use trucking to help address their needs. The waiver was extended on Dec. 23 and ran until Jan. 15, and included 19 states in the Mid-Atlantic and Midwest. 

3. How did NPGA respond to these disruptions? What processes & organizations have helped with resolution? 

Nussdorf: NPGA has been in regular contact with Enterprise and the Department of Transportation on both disruptions since they occurred. NPGA led the efforts to get an emergency regional waiver and continues to provide updates to FMCSA daily. NPGA also is in touch with state leaders, suppliers and marketers regarding conditions and inventory. NPGA has also been in touch with railroads about supplementing supply. 

4. Are there any regulatory issues or standards the industry needs to keep top of mind when it comes to supply disruptions & emergencies? 

Nussdorf: The industry should be mindful of hours-of-service regulations from FMCSA, as well as pipeline safety regulations from the Pipeline and Hazardous Materials Safety Administration. 

5. Are there any short-term or long-term repercussions the industry should be aware of in light of these disruptions? 

Nussdorf: The industry should be mindful of loading times and delays at pipelines and attempt to schedule their pickups at times of diminished demand. NPGA will continue to work with the industry, pipelines, railroads and the federal government to minimize disruptions to operations. 

6. How does NPGA prepare in advance for supply disruptions? What strategies & tools can people use to minimize supply chain disturbances? 

Nussdorf: NPGA’s Supply and Logistics Committee meets frequently and engages with pipelines and railroads to provide transparency and address issues of supply disruptions. NPGA hires outside consultants to review supply conditions. NPGA also regularly works with state and federal leaders to educate them about supply and logistics challenges. Suppliers and marketers can provide data to NPGA, such as pipeline disruptions, trucking challenges such as significant lines at terminals, missed rail switches and number of cars missed per switch, and storage concerns. All of this data is essential in communicating concerns to state and federal leaders. 

7. What is the role of communication during events like this? Are there any ways the industry can improve in communicating when things like this occur? 

Nussdorf: Effective communication is essential. We encourage you to contact your state or regional leadership, or NPGA’s State Affairs team, with particular concerns. Without your communications, we lack on-the-ground knowledge, which we would like to be able to share with regulators who can manage supply and logistics regulations. 

8. Is there anything else you’d like to share with our readers? 

Nussdorf: We greatly appreciate the efforts of NPGA’s Supply and Logistics Committee. If you are interested in participating in order to play an active role to address the industry’s concerns in this area, please reach out to Christine Hutcherson at [email protected].