Despite comparatively milder temperatures in most regions this winter, there is nonetheless a risk that the U.S. could reach critical days of propane supply over the heating season. That alert came from IHS Markit at the National Propane Gas Association’s Supply & Logistics Committee meeting in San Antonio, Texas Jan. 29. As February rolled up, Debnil Chowdhury, director of U.S. NGL research at IHS, advised that days of supply stood at 24.9 days, a total below the five-year average. He added that even with primary stocks remaining higher than historical levels, it was no longer a good practice to compare current stocks to five-year averages or even the prior year to determine how long or short supply is. Rather, days of supply should be the...

P ermits in hand, Crestwood Services, the supply and logistics arm of Crestwood Equity Partners LP (Kansas, City, Mo.), has commenced construction of a new rail terminal in Montgomery, N.Y. Development of the facility is aimed at providing propane marketers across New York, New Jersey, Pennsylvania, Connecticut, and other regions of the Northeast with additional supply sourcing and reliability. The terminal is expected to come online in the second quarter of this year. Located in Orange County in the south of the Empire State, the rail facility abuts Interstate 84 and is five miles from the New York State Thruway, providing connections to numerous major roadway transportation arteries in the region. The terminal will occupy a 20-acre site, part of a larger 880-acre rail service...

While concrete details have yet to be spelled out, President-elect Donald Trump’s statements during his successful election campaign indicate he would likely adopt policies that attempt to expand fossil fuel production, ease regulations on the energy industry, and roll back President Obama’s environmental and climate policies, comments S&P Global Platts. The consultancy adds that Trump has indicated he will let markets decide what lands to drill and dismantle the Environmental Protection Agency’s ability to over-regulate industry. Further, the incoming president will enjoy a Republican majority in both the House of Representatives and Senate upon his incumbency. Trump’s surprise upset over his widely favored Democratic rival, Hillary Clinton, elicited numerous positive comments from the energy sector. The American Petroleum Institute (API) asserted, “American voters have spoken....

A colder winter is forecast, promising a heating season that will be colder than last year. Will it be cold enough? Despite record-high propane inventories, those elevated levels don’t guarantee supply on a days-of-demand basis, meaning stocks can be drawn down sharply and quickly depending on exports — the U.S. is an export powerhouse. Further, recent state victories by the propane industry to derail ratepayer-subsidized, socialized natural gas main expansions don’t signal the nationwide fight is over. Added to all that, there’s a war on hydrocarbons in the U.S. These were among the observations and topics discussed at the Oct. 2016 National Propane Gas Association’s (NPGA) fall board of directors meeting in Asheville, N.C. The Supply and Logistics Committee meeting was up first. Reported was that oil...

Reno, Nev.-based United Pacific Energy, the new owner of Enterprise Products’ former Bakersfield, Calif. LPG rail and truck terminal, sold its first propane loads out of the facility in July. But saying the company is the new owner might not be completely accurate due to the history. The former father-in-law of United Pacific’s owner, David Humphreys, built the terminal to augment his Coast Gas operations in the late 1970s. That gentleman was industry pioneer and innovator Wayne Harlan, and he’s the grandfather of David W. Humphreys, United Pacific owner David Humphreys’ son, who handles wholesale marketing at the family-owned and -operated business. The Bakersfield terminal was sold to Cornerstone Propane in the mid-1990s. Cornerstone, to be renamed Coast Energy Group, then sold it to Enterprise...

A sold-out exhibit space at the Reno Events Center once again highlighted the Western Propane Trade Show and Convention May 12-14 in Reno, Nev., the 67th annual running of the event, which was headquartered at the Silver Legacy Hotel in the Biggest Little City in the World. The largest propane industry gathering west of the Mississippi, the show featured more than 200 exhibiting companies showcasing the latest products, vehicles, and services. Educational sessions were also included at the convention, which was co-sponsored by the Western Propane Gas Association, Arizona Propane Gas Association, Rocky Mountain Propane Gas Association, Nevada Propane Dealers Association, and the Pacific Propane Gas Association. The trade show and convention were preceded by a golf tournament at Wolf Run Golf Couse, a sporting...

In the long run, U.S. NGL producers will have major cost advantages over their international peers, says Bill Briggs, director, waterborne NGL origination at Phillips 66. Any production growth slowdown is likely to be temporary due to cost deflation, high grading, innovation, consolidation, and global fundamentals. With international demand expected to grow by 42% from 2011 to 2025, Phillips 66 in the second half of this year is scheduled to bring online its Freeport, Texas LPG export terminal as part of its Sweeny Hub initiative. In a presentation at the February Argus Americas LPG Summit in Key Largo, Fla., Briggs, a graduate of the U.S. Merchant Marine Academy at Kings Point, N.Y. and a 19-year commercial marine industry veteran, noted that the outlook for U.S....

The U.S. Virgin Islands’ conversion to LPG for electrical power generation is hailed as a first of what is hoped will be many such projects, and further, a model for other island power authorities and small utilities serving confined areas to emulate. Lessons learned from the territory’s ambitious initiative can be adopted so more can enjoy the benefits of a cleaner, less expensive fuel that benefits the utility and ratepayers while at the same time improves air quality and treads more lightly on the environment. “This project is the first of many more,” declares Hugo V. Hodge Jr., past executive director of the Virgin Islands Water and Power Authority (WAPA). “The economics are there. This project is a living, breathing example for others to view.”...