12-Year Cylinder Requalification Proposed by PHMSA
Tuesday, August 20, 2019
(August 20, 2019) — The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has published a notice of proposed rulemaking calling for a return to a 12-year cylinder requalification period after hydrostatic, aka volumetric expansion, testing, reports the National Propane Gas Association (NPGA).
Altus Acquires Stake in Shin Oak NGL Pipeline
Friday, August 16, 2019
(August 16, 2019) — Enterprise Products Partners LP (Houston) and Altus Midstream Co. (Houston) have closed a deal that will have Altus Midstream acquire a 33% equity interest in an Enterprise Products subsidiary that owns the Shin Oak natural gas liquids pipeline. The 658-mile Shin Oak Pipeline transports growing NGL production from multiple basins, including the Permian, to Enterprise’s fractionation and storage complex in Mont Belvieu.
ONEOK To Expand NGL, Natural Gas Infrastructure
Friday, August 16, 2019
(August 16, 2019) — ONEOK (Tulsa) has reported plans to expand natural gas and natural gas liquids infrastructure between now and 2021, including the construction of a 200-MMcfd upgrade of the Bear Creek natural gas processing plant and related infrastructure in the Willison Basin.
$4.5 Trillion Cost Seen for Decarbonizing Power Grid
Wednesday, August 14, 2019
(August 14, 2019) — New analysis by Wood Mackenzie finds that the transition to a 100% renewable U.S. power grid will need an investment of up to $4.5 trillion over the next 10 to 20 years. The Edinburgh, Scotland-based global consultancy estimates that about 1600 gigawatts (GW) of new wind and solar capacity would be needed to produce enough energy to replace all fossil fuel generation in the U.S.
Imported Propane Cylinders Ruled Injurious to Domestic Manufacturers
Tuesday, August 13, 2019
(August 13, 2019) — The U.S. International Trade Commission (USITC) has determined that domestic manufacturers are materially injured by imports of steel propane cylinders from China and Thailand. The U.S. Department of Commerce (DOC) has also determined the cylinders are sold in the U.S. at less than fair market value and are subsidized by the Chinese government.

 

Volkswagen Settlement Funds Used To Purchase Propane School Buses
Tuesday, August 13, 2019
(August 13, 2019) — South Carolina officials will use the first round of money from the state’s share of the Volkswagen Settlement Fund to buy new propane-powered school buses. The new vehicles will replace aging buses operated by the South Carolina Department of Education. Settlement funds will also be directed at investments in clean-energy public transportation in the Lowcountry and in the city of Anderson.
Refiners Seek To Include Butane as Alternative Fuel
Tuesday, August 13, 2019
(August 13, 2019) — The Associated Press (AP) reports that the Internal Revenue Service (IRS) has been beset by loads of amended excise tax forms submitted by refiners over the past few years. That industry has gained a heightened appreciation of butane, a liquefied petroleum gas and a byproduct of the crude oil refining process. Refiners maintain it qualifies as an alternative fuel under the 2005 surface transportation law. Therefore, it is eligible to receive a 50-cents-per-gallon tax credit, even when it is blended in gasoline.
Petroleum, Natural Gas, Coal Continue to Dominate Energy
Wednesday, August 7, 2019
(August 7, 2019) – Fossil fuels—petroleum, natural gas, and coal— have accounted for at least 80% of energy consumption in the U.S. for well over a century, writes the Energy Information Administration (EIA). Overall energy consumption in the nation reached a record-high in 2018 at 101 quadrillion Btu, of which more than 81 quadrillion Btu were from fossil fuels. Despite the increase, the fossil fuel share of total U.S. energy consumption in 2018 rose only slightly from 2017 and was the second-lowest since 1902.
Strait of Hormuz the World’s Leading Oil Transit Chokepoint
Monday, August 5, 2019
(August 5, 2019) — The Strait of Hormuz, located between Oman and Iran, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The strait is the world’s most vulnerable oil chokepoint because of the large volumes of crude that flow through it, writes the Energy Information Administration (EIA). In 2018, the strait’s daily oil flow averaged 21 MMbbld, or the equivalent of about 21% of global petroleum liquids consumption.
Quarles Petroleum Acquires PAPCO’s Propane Business
Wednesday, July 31, 2019
(July 31, 2019) — Quarles Petroleum (Fredericksburg, Va.), a regional provider of residential and commercial fuel, recently announced it has acquired the commercial and residential propane business of PAPCO Inc. Quarles said it will transition PAPCO customers into its service centers in southeastern and central Virginia. Quarles clarifies that PAPCO is divesting only its propane business, and will continue to operate its fuel business based in Virginia Beach, Va.
Stocks to Rise Year on Year, Days of Disposition Restrained
Friday, July 26, 2019
The National Propane Gas Association (NPGA), citing weekly stock reports by the Energy Information Administration, observes in its June summary that propane inventories continue to show an increasing separation compared to the volume levels seen in 2017 and 2018 at the same time of year—and a return to the higher supplies the U.S. experienced before the most recent wave of export terminals began operating.
Mont Belvieu Propane, Butane Prices to Climb
Monday, July 22, 2019
(July 22, 2019) — The U.S. and global LPG markets will remain partitioned until new export capacity enables more North American product to reach Asia and other markets, according to ESAI Energy’s newly published Global NGL 12-Month Outlook, and as reported by Hydrocarbon Engineering. And the relinking of North America and the world market has bullish implications for Mont Belvieu NGL prices and U.S. export volumes.
Bechtel Gets Construction Contract for Ohio Cracker
Thursday, July 18, 2019
A proposed construction project to build an ethane cracker in eastern Ohio has taken a step forward, reports Kallanish Energy. Engineering giant Bechtel Corp. (Reston, Va.) has been hired by Thailand’s PTT Global Chemical America and its South Korea-based partner, Daleim, to build the $6-billion facility. A final investment decision has yet to be made.
Lax Crewmen on Michigan Vessel Caused Anchor Strike
Monday, July 15, 2019
(July 15, 2019) — A much-enumerated, singular anchor strike has mushroomed into a casus belli. Michigan’s governor, the state’s top law enforcement official, and their political and environmental supporters demand the expedited shutdown of Calgary-based Enbridge Inc.’s Line 5 pipeline beneath the Straits of Mackinac.
Ohio Governor Underscores Impact of Line 5 Shutdown
Friday, July 12, 2019
Ohio Gov. Mike DeWine met in June with Gov. Gretchen Whitmer of Michigan to express his concerns regarding her plans for decommissioning or replacing Enbridge Inc.’s (Calgary) Line 5 pipeline. Meanwhile, Lt. Gov. Jon Husted traveled to Toledo to meet with employees at Toledo Refining. The pipeline traverses the Straits of Mackinac and serves several refineries in northwest Ohio.
FMCSA Expected to Release Hours-of-Service Rule Soon
Tuesday, July 9, 2019
Land Line Magazine, the official publication of the Owner-Operator Independent Drivers Association (OOIDA), reports that Federal Motor Carrier Safety Administration (FMCSA) Administrator Ray Martinez recently testified before a Senate Committee that he expects the agency’s notice of proposed rule-making for revised hours-of-service (HOS) regulations to be published soon. He did not, however, provide a date.
Utica Shale Sees Sharp Jump In Natural Gas Output
Monday, July 8, 2019
(July 9, 2019) — Gas producers active in the Utica Shale play, both big players and those with smaller operations, have seen sharp spikes in output over the past several years, reports S&P Global Platts, citing speakers at June’s Hart Energy DUG East conference in Pittsburgh. Ascent Resources, (Oklahoma City), one of the dominant participants in the Utica, has seen a dramatic ramp-up in production since it began drilling in earnest about three years ago, Ascent CEO Jeff Fisher said.
Enbridge Seeks Ruling on Agreement Enforcement
Monday, July 8, 2019
Calgary-based Enbridge Inc. has filed a legal action with the Michigan Court of Claims to establish the constitutional validity and enforceability of agreements signed between the company and the state of Michigan. The action relates to the construction and operation of a tunnel underneath the Straits of Mackinac to house a replacement for Enbridge’s Line 5 pipeline.
Michigan Governor’s Order Slammed as Fool’s Errand
Monday, July 1, 2019
An Upper Peninsula state senator in Michigan has slammed Gov. Gretchen Whitmer’s executive order to explore alternatives to meeting the region’s propane needs without Enbridge Inc.’s (Calgary) Line 5, arguing on the floor of the senate there are “no viable alternatives,” reports Michigan Live.
Superior Plus Corp. Considers Divesting Chemicals Business
Monday, June 17, 2019
(June 17, 2019) — Superior Plus Corp. (Toronto) said June 10 it is considering the sale of its specialty chemicals business, which operates under the trade name ERCO Worldwide. Superior Plus added that given the significant growth opportunities in its U.S. energy distribution business, and the potential benefits of it becoming a pure play energy business focused on retail propane distribution, it had retained Barclays Capital Canada Inc. to assist with a potential sale of the specialty chemicals segment.
First Cargo Departs AltaGas’ Prince Rupert Export Terminal
Wednesday, June 12, 2019
(June 12, 2019) — AltaGas (Calgary) said May 28 that the first export cargo departed its new terminal bound for Asia on May 23. The company’s new Ridley Island Propane Export Terminal (RIPET) is located in Prince Rupert, B.C. and is the first marine export terminal in Canada. The facility began introducing propane feedstock in mid-April.
Enterprise Products to Extend Ethylene Pipeline Network
Monday, June 10, 2019
Enterprise Products Partners LP (Houston) is extending its ethylene pipeline and logistics system further into South Texas, a leading growth area for new crackers and ethylene derivative plants. The Baymark ethylene pipe- line will originate in the Bayport area of southeast Harris County and extend about 90 miles to Markham, Texas in Matagorda County.