Author

John Needham

  • Feature Articles

    2018 Retail Propane Sales Jump 13.6%

    (March 16, 2020) — U.S. retail sales of odorized propane topped off at 9.3 billion gallons in 2018, marking a 13.6% advance over the 8.2 billion gallons sold in 2017, reports ICF International’s Annual Retail Propane Sales Report: U.S. Odorized Propane Sales by State and End-Use Sector. As noted by the Propane Education & Research Council (PERC), which commissions the annual survey, the stronger tally marked the first time since 2014 that sales exceeded 9 billion gallons. Further, compared to the previous decade, 2018 sales were 9.56% above the 10-year average of 8.6 billion gallons of odorized propane sold per year. In its second sales report for PERC since taking over duties from the American Petroleum Institute, ICF International comments that during 2018 the U.S....

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  • Feature Articles

    Sulfur Limits Signal Sea Change And Potential Growth for LPG-fueled Vessels

    (December 30, 2019) — Strict requirements for ships to significantly cut sulfur oxide emissions snap into effect Jan. 1, 2020, marking a sea change for the global fuel used to power oceangoing vessels. A new International Maritime Organization (IMO) rule will significantly reduce air pollution to the benefit of human health and the environment, but the change also represents a challenge for the industry. Under the updated cap ratified by IMO, the United Nations’ standard-setting authority for the safety, security, and environmental performance of international shipping, the sulfur content of fueloil used by ships operating outside designated emission control areas shall not exceed 0.5%, which represents an 80% cut from previous 3.5%. So, the adjustment means most ships will switch to new types of compliant...

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  • Feature Articles

    Eye-Popping Inventories, But How Many Barrels Are Handy?

    (October 7, 2019) — Primary U.S. propane/propylene inventories were fast-marching to 100 MMbbl in August, an achievable level in the current environment and one that was surpassed as recently as 2016. The National Propane Gas Association (NPGA) notes in its Inventory Trends report that builds are accelerating within historical norms and are expected to stay robust and above 2018 levels for the U.S. as a whole. The association observes that continued growth in propane supply is being driven by upstream oil and gas drilling activity, especially in the Permian Basin and the Appalachia region. So, should everybody relax? Not necessarily. “A few years back if you told propane industry professionals that we would have somewhere between 90 MMbbl and 100 MMbbl heading into winter, there...

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  • Feature Articles

    Rick 4.0 Approaches as Closeout Nears For Roldan 3.0

    (September 18, 2019) — In software versioning parlance, National Propane Gas Association (NPGA) president and CEO, Rick Roldan, observes he will soon transition from 3.0 to 4.0. The former is his tenure at NPGA, the latter what comes next. Roldan concludes his 25 years of service to the association at the end of this year. Rather than lament the departure, he’s eyeing new options, professional and volunteer, and expressing “boundless gratitude” for this two and a half decades in the propane industry, including 18 years at the helm of NPGA. His outlook echoes that of country music performer, actor, and businessman Jimmy Dean, who noted, “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” “It’s...

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  • Public Policy

    Propane Needs Seat At Table: Ensuring Policy Influence

    The U.S. propane market is changing. There are warning signs on the near-horizon, counsels ICF International’s 2019 propane market outlook. That cautionary forecast comes despite a national supply revolution that has yielded American-made fuel abundance unimagined just a short decade ago. Moreover, the Fairfax, Va.-based consultancy and business intelligence provider advises that the propane retail segment is at risk, a vulnerability that can only be blunted by a resolute, industrywide growth mindset to reverse negative trends and grow sales. By rethinking traditional business models and seizing available opportunities, the propane industry can, however, rise above the challenges. PERIOD OF MARKET TRANSITION ICF’s rundown recognizes that the propane industry has entered a period of market transition, driven by changing demographics, new technologies and, most critically, shifting...

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  • Feature Articles

    Cooler Winter, Low Days of Propane Supply Seen…

    Primary U.S. propane inventories are expected to shrink to low days of supply in February and March and exit winter at low volumes as calculated against daily demand. But stocks are forecast to reload thereafter, largely due to a lack of new needed export capacity in 2019 to accommodate rising domestic output. Noteworthy is that the risk of substantial critical days of supply this winter is primarily a Gulf Coast anomaly, with other regions standing within or above the average range as the peak heating season rolls up. Those conclusions, among others, were forwarded at the National Propane Gas Association’s (NPGA) Supply & Logistics Committee meeting Sept. 30 in Houston. Debnil Chowdhury, executive director of IHS Markit oil, midstream, downstream, and chemicals research, observed that...

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  • Feature Articles

    Ray Energy Opens New Rail and Truck Terminal Near NY/VT Border

    Just in time for the 2018-19 winter heating season, Troy, N.Y.-based Ray Energy has commissioned its new propane rail and truck terminal in Hampton, N.Y. The 21-acre, Washington County facility is located near the New York-Vermont border. It features a 16-spot rail siding with an operational capacity of 28 railcars, and on-demand switching provided by the Vermont Railroad. Ray Energy’s railcar mover provides the ability to offload 16 cars a day. Two dual-sided rail towers with retractable arms can unload two railcars in three hours. Piping that has been installed will allow the company to bring two additional dual-sided rail towers into service with minimal lead time. Four 60,000-gal. bulk tanks provide storage for 240,000 gallons. An expansion has been approved to raise stored tank...

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  • Feature Articles

    Lake House, Boat, Grandson—One Sweet Spot For Koloroutis

    Last April’s announcement was as trenchant as it was concise. George Koloroutis, CEO of Frederick, Md.-based ThompsonGas, was retiring following six years at the burgeoning company. Over his tenure the enterprise grew to have a coast-to-coast footprint and annual sales that spiked more than 500%. “George has been absolutely instrumental in driving growth at ThompsonGas,” said CFO Dave Franchak. “With George at the helm, our company has gone from a Mid-Atlantic propane marketer to a national propane distributor. His insight and leadership will certainly be missed. We wish him all the best in his retirement.” Koloroutis’ long-time colleague Jeff Kerns will succeed him as CEO. “I’ve deeply enjoyed my time with ThompsonGas,” Koloroutis commented at the time. “I’m looking forward to enjoying all that retirement...

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  • Feature Articles

    China Tariffs—Belvieu Propane Prices May Face Pressure

    Analysis released in April of U.S.-China trade relations by IHS Markit — namely escalation of the two countries’ ongoing trade dispute — finds that both have responded with bids of punitive tariffs that could, if enacted, derail a global economic boom that has benefited the world petrochemical industry, a multinational enterprise that has enjoyed significant profitability across many sectors. Noted is that the U.S. petchem industry, in particular, has experienced a renaissance in productivity and profitability due to its abundant supply of advantaged, domestically produced shale gas feedstocks thanks to the shale boom, enabling it to invest significantly in capacity and new production, much of which is aimed at exports to feed hungry Asian and Chinese markets. “While the U.S. represents a country with many resources, including available investment...

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  • Feature Articles

    LPGA Joins Coalition—Supports Louisiana Energy Industry

    With an eye toward inching advocacy contra to energy and petrochemical industry development, the Louisiana Propane Gas Association (LPGA) has signed on as an inaugural member of a coalition launched to support oil and gas. Allies of the burgeoning energy economy have founded Louisianians for Energy, a grass-roots effort aimed at defending development and the myriad economic benefits it creates for Bayou State communities. Louisianians for Energy comments that the energy industry has long been a pillar of the state economy, providing good-paying jobs, generating millions of dollars in revenue for local economies, and producing the energy resources that consumers across the country rely upon each and every day. Noted is that the industry employs more than 100,000 Louisianians, as reported in the U.S. Department...

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