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Feature Articles

In-depth feature stories examining the trends, challenges and innovations shaping the propane and LPG industry.

  • Odorant Requirements Among Latest NFPA 58 Revisions

    A requirement that the addition of odorant must be documented at the point of odorization is just one of the new provisions that will be included in the 2017 version of NFPA 58, the Liquefied Petroleum Gas Code. Among other changes are new requirements regarding placement of containers no longer connected for use, engineering for snow depth, vehicle barrier protection, and propane containers for hot air balloons. In addition, a new chapter to the document covers LP-gas for over-the-road vehicles. Eric Nette, staff liaison for the National Fire Protection Association (NFPA), will discuss changes in the latest version of NFPA 58 during a fast-track session on April 9 at the National Propane Gas Association (NPGA) Southeastern Convention and International Propane Expo in Nashville, Tenn. Nette,…
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  • A Lackluster Winter, But Prepare for What’s Around the Corner

    Exiting what has been described as the worst December on record for the propane industry, and generally a winter heating season that has not been exciting, marketers are nonetheless being cautioned to prepare for changes that could be just around the corner. Propane inventories in the U.S. are much higher than domestic demand requires, a major reason why exports are soaring. But production levels and stockpiles must remain elevated in order to maintain U.S. propane’s lower-price advantage over other exporters, thereby maintaining American waterborne arbitrage. And high volumes in primary storage, especially on the Gulf Coast, can be drawn down quickly when exports ramp up. Plus, the ability to ship even more from U.S. shores is coming online. Kicking off the National Propane Gas Association’s…
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  • Alliance AutoGas Claims Record For Fastest Alt Fuel Conversion of F-150 to Propane at 2016 Work Truck Show

    (Swannanoa, NC) March 4, 2016 – Claiming a record for the Fastest Recorded Alternative Fuel Conversion to propane autogas, Alliance AutoGas conversion technicians Stephen Holland and Stacey Snyder (pictured here) installed Alliance’s new Engineered Conversion System on a Bi-Fuel 2016 3.5 Liter Ford F-150 V6 almost 30 minutes faster than the predicted 2 hour window at the recent Work Truck Show. Over 100 participants attended the press event and witnessed the live conversion at the Indianapolis Convention Center on March 3, 2016. Alliance AutoGas’ Engineered Fuel System features a single plug wiring connector featured a 21-gallon underbody autogas tank. All wiring is a “plug and play” no cut install. Everything is bracketed and designed to be installed without any drilling or fabrication. By deploying these…
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  • Propane Education & Research Council Opens 2016 Propane Farm Incentive Program

    The Propane Education & Research Council (PERC) announced the release of the 2016 Propane Farm Incentive Program (FIP), a nationwide research and demonstration initiative offering farmers purchase incentives of up to $5,000 toward new propane-powered farm equipment. The FIP a research program that tests the performance of new propane-powered technology in agriculture equipment such as irrigation engines and grain dryers. Producers who enroll in the program are offered a financial incentive in exchange for recording performance data of the equipment being tested. The 2016 Propane Farm Incentive Program offers a variety of farm-related equipment incentives including 10 cents per square foot for propane-powered agricultural heating systems. The incentive program also helps offset the upfront costs of other new agriculture equipment. According to PERC, a growing…
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  • ROUSH CleanTech Announces Two Major Brands Add Propane Autogas Delivery Fleets

    Indianapolis, IN (March 3, 2016) — ROUSH CleanTech announced today at the Work Truck Show that two major brands had adopted the ROUSH CleanTech propane autogas fuel system to operate their delivery fleets; Nestlé Waters North America and Bimbo Bakeries USA. Environmental stewardship is just one reason Nestlé Waters North America is adding more than 150 medium-duty beverage delivery trucks fueled by propane autogas — but it’s a big motivation: Over the vehicles’ lifetime, the 155 Ford F-650 trucks will reduce carbon dioxide emissions by more than 24.6 million pounds. These units will be deployed beginning in April. “Becoming a better steward of our environment is a priority for Nestlé Waters,” said Bill Ardis, national fleet manager for Nestlé Waters North America, speaking at the…
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  • MFA Oil Company Continues Expansion With Eastern Kansas Acquisition

    COLUMBIA, MO (February 23, 2016) – MFA Oil Company, the seventh largest propane retailer in the United States, announced it has acquired S&S Oil and Propane Company, Inc. (S&S), a propane, refined fuels and lubricants retailer based in Emporia, Kan. The expansion includes 17 propane storage facilities, five bulk fuel storage facilities, five card refueling locations and an office in Emporia. “This is a major acquisition that will significantly broaden our business in Kansas and fits in well with the Lybarger Oil purchase we made in September 2015,” says Don Smith, MFA Oil director of mergers and acquisitions. “The volume of business we’ve acquired from S&S and Lybarger is larger than all of MFA Oil’s previous bulk fuel and propane acquisitions for the last five…
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  • The Internal Revenue Service (IRS) announces new calculation for propane autogas excise tax rate

    According to today’s Legislative Alert from the National Propane Gas Association (NPGA), there is a new calculation that claimants must complete to account for the energy content disparity between propane and gasoline on the revised Form 720. That calculation, or the gasoline gallon equivalent (GGE), means that every 1.353 gallons of propane are taxed at $0.183-per-gallon. Simply stated, the excise tax rate on propane is $0.135-per-gallon, resulting in a 26 percent reduction from the previous rate. The excise tax equalization, which became law last year, applies to fuel sold on or after January 1, 2016. According to the IRS's calculations, propane has approximately 74 percent of the energy content of gasoline. It is important to note that this is the new permanent rate for propane…
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  • Alliance AutoGas Reports Substantial Growth Increase In 2015

    Alliance AutoGas recently announced a substantial upswing in 2015 sales of its autogas engineered fuel equipment system segments and low-emissions nozzle adoption. This increase in autogas adoption among vehicle fleets provides a significant contribution to the number of propane gallons consumed. Stuart Weidie, president of Alliance AutoGas, an international network providing a comprehensive propane autogas solution for fleets, reports in 2015 alone, the 120 Alliance AutoGas members collectively displaced 45 million gallons of gasoline and produced $54 million in fuel cost savings for the 460 fleets they service. According to Ed Hoffman, president of Blossman Services Inc., “The Alliance engineered equipment segment experienced a 44% increase in overall sales in 2015. This growth is fueled by many variables including vehicle platform focus and our world-class…
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  • NORTH AMERICAN 2015 FORKLIFT SALES RECORD-BREAKING ANNOUNCES INDUSTRIAL TRUCK ASSOCIATION (ITA)

    WASHINGTON, D.C. – (Feb. 16, 2016) – The lift truck market in North America is at an all-time record high in the material handling industry. Total retail orders in all classes, excluding exports, totaled 225,534 units in 2015. It is the first year lift truck sales are higher than the industry’s pre-recession level of 215,000 units in 2006. “After a slow and steady recovery from the recession, the North American lift truck industry is healthy and strong,” said Brett Wood, president & CEO of Toyota Material Handling North America and ITA Chairman of the Board. “We hope more skilled professionals see our growth and realize the many opportunities available for an exciting career in the material handling industry and specifically the lift truck industry.” Breaking…
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  • Planning to Sell the Business? Take Steps to Ensure a Successful Transition

    By Thomas E. Knauff . . . You’ve worked hard to build a high-quality propane business. Over the years you have put the right team in place and grown the operation. The business meets your customers’ needs and provides a rewarding career. When you get to the stage of considering a personal exit strategy, one of your top concerns is how to ensure a smooth transition for “your baby”— to effect an ordered hand-off to a new owner who will keep your legacy intact and treat your employees and customers fairly. Networking with industry colleagues, you may hear horror stories from propane marketers who sold their businesses: The new owners came in and laid off employees; customer service declined and the complaints multiplied; workers who stayed…
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  • FuelOil Conversion Opportunities Promise Additional Gallons

    The residential fueloil market in the U.S. is larger than the residential propane market, reports ICF International’s “2016 Propane Market Outlook,” with a reported 6.2 million households using the fuel for primary space heating in 2014 while 5.9 million used propane. However, nearly 240,000 homes convert from fueloil space heating each year. The majority switch to natural gas and electricity, but about 30,000 convert to propane. Moreover, in the past few years the propane industry has gained about the same number of customers from fueloil conversions every year as it has from new residential construction. Drivers affecting the fueloil market vary by state, but the main factors are duplicative: relatively high prices for fueloil compared to other fuels and increasing costs associated with the fuel’s…
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  • Clean Cities: 22 Years of Propane Advocacy

    Propane industry members and likely the rest of the U.S. remember the economic crisis of 2008 and the American Recovery and Reinvestment Act stimulus program. Dedicated propane projects, which started in 2009 and 2010 under the U.S. Department of Energy’s Clean Cities program, received $33.5 million from the stimulus package, and that money funded more than 3500 propane vehicles in 28 states and more than 250 refueling stations in 18 states. Those programs are just now wrapping up — fueling stations are built and the propane vehicles have been manufactured and delivered. “Now the vehicles are just starting their lives of serving the fleets and driving,” national Clean Cities director Dennis Smith told BPN . “We’re doing data collection for several years to see how many miles…
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