Spot Cargo Premium Hits Another High on Gulf Coast
Thursday, January 23, 2020
(January 23, 2020) — Prices for spot propane cargos on the U.S. Gulf Coast hit 68-month highs in late December 2019 amid weak Mont Belvieu prices and softer freight rates, reports S&P Global Platts. Free onboard propane cargos for loading 30 to 45 days forward spiked to a 30-cent/gal. premium over cavern product. The last time the propane cargo premium was higher was in April 2014 at 30.50 cents/gal.
U.S. Sets New Record For Energy Consumption
Tuesday, January 21, 2020
(January 21, 2020) — In a presidential race that has seen Democratic candidates universally assault fossil fuels and call for banning their use in order to reverse climate change, the Energy Information Administration (EIA) at year end reviewed that primary energy consumption in the U.S. reached a record high of 101.3 quadrillion Btu in 2018. That mark was up 4% from 2017 and was 0.3% above the previous record set in 2007. The increase in 2018 was the largest rise in energy consumption, in both absolute and percentage terms, since 2010.
19 Million Jobs Wiped Out If Proposed Hydraulic Fracturing Ban Proceeds
Monday, January 20, 2020
(January 20, 2020) — New analysis by the U.S. Chamber of Commerce’s Global Energy Institute finds that a ban on hydraulic fracturing in the U.S., as proposed by Democratic presidential candidates, would eliminate 19 million jobs between 2021 and 2025. The prohibition would also reduce U.S. gross domestic product by $7.1 trillion over the same period.
Trade Group Backs Principle of Power Market Carbon Pricing
Wednesday, January 15, 2020
(January 15, 2020) — A U.S. trade group representing large natural gas suppliers has come out in favor of a carbon price as a key method of reducing carbon emissions in power markets now, and enabling drastic cuts or eliminating emissions in the future, reports S&P Global Platts. The position, which the Natural Gas Supply Association (NGSA) announced Dec. 3, comes as an increasing number of states are adopting ambitious carbon-reduction goals and renewable portfolio standards.
U.S. LPG Exports Seen Poised for More Growth
Tuesday, January 14, 2020
(January 14, 2020) — Argus Media reports that the U.S. propane arbitrage at Mont Belvieu, relative to delivered prices in Asia on the Far East Index (FEI), widened to $200 a metric ton (MT) on paper by the end of 2019. Strong U.S. production kept prices in the U.S. low. The steep decline for U.S. propane decoupled it from delivered prices in Asia in early December. Using spot freight, that initially left the calculated cost of U.S. product delivered into the region $35/MT below delivered prices on the FEI.
U.S. Exports More Crude, Petroleum Products Than Imports in September
Thursday, January 9, 2020
(January 9, 2020) — The U.S. exported 89,000 bbld more crude oil and petroleum products than it imported in September, the first month this has happened since monthly records began in 1973, reports the Energy Information Administration (EIA). The agency explains that net petroleum trade is calculated as total imports of crude oil and petroleum products, less total exports of crude oil and petroleum products.
Energy Transfer, SemGroup Complete Merger Transaction
Thursday, January 2, 2020
(January 3, 2020) — Energy Transfer LP (Dallas) and SemGroup Corp. (Tulsa) have announced the completion of their merger. The terms of the agreement were approved by holders of a majority of SemGroup’s outstanding voting stock Dec. 4. As a result of the merger, Energy Transfer issued about 57.6 million of its common units to SemGroup stockholders. Effective with the opening of the market Dec. 5, SemGroup ceased to be a publicly traded company and its stock was no longer traded on the New York Stock Exchange.
Enterprise and Enbridge Eye Developing Export Terminal
Thursday, January 2, 2020
(January 2, 2020) — Enterprise Products Partners LP (Houston) and Enbridge Inc. (Calgary) announced Dec. 9 that their affiliates had signed a letter of intent to jointly develop a deep-water crude oil terminal in the Gulf of Mexico capable of fully loading very large crude carriers, or VLCCs.
November 2019 Propane Stocks Hold Above Historical Levels
Monday, December 30, 2019
(December 30, 2019) — The National Propane Gas Association’s (NPGA) November Inventory Trends report reviews that primary U.S. propane/propylene stocks hovered around the 100 MMbbl mark on a weekly basis throughout October before falling to 97.7 MMbbl the week ended Nov. 8. Over this same period propane prices increased in absolute terms and strengthened relative to crude.
Boulden Brothers Propane Acquired By Chesapeake Utilities Subsidiary Sharp Energy
Friday, December 27, 2019
Dover, DE (December 27, 2019) — Chesapeake Utilities Corporation (NYSE: CPK) recently announced that its propane subsidiary, Sharp Energy, executed an agreement to acquire the propane operating assets of Boulden Brothers Propane in Newark, Delaware. The parties closed the transaction December 13, 2019. Terms of the transaction were not publicly disclosed.
Connecticut Propane & Petroleum Acquires Phoenix Propane
Tuesday, December 24, 2019
KENT, CONNECTICUT (December 24, 2019) — Cetane Associates LLC recently announced that Connecticut Propane & Petroleum, LLC of Marlborough, Connecticut has acquired the propane distribution business of Phoenix Propane, LLC of Oxford, Connecticut.

Founded in 2010, Phoenix Propane, LLC markets propane and related products to approximately 2,000 residential and commercial customers located within Fairfield, Lower Litchfield, and Western New Haven counties of Connecticut.
Unharvested Corn Is Latest Blow from Growing Season
Sunday, December 15, 2019
Heavy snow in parts of the northern U.S. could prevent some farmers from harvesting the rest of their corn and soybeans until 2020 in the latest weather-related blow to growers, notes the Longview News-Journal.
TSP Winner of PERC’s Project of the Year Award
Sunday, December 15, 2019
The Propane Education & Research Council (PERC) has presented TSP, an architecture and engineering firm with offices in South Dakota, Minnesota, and Nebraska, with its 2019 Project of the Year award. The accolade recognizes residential and commercial projects powered by propane.
Certified Employee Training Program (CETP) Undergoes Exciting Changes In 2020
Sunday, December 15, 2019
(December 17, 2019) — The industry’s long-standing Certified Employee Training Program (CETP) is undergoing exciting changes in the way it delivers safety education and compliance material to the propane industry workforce. In a letter to industry professionals, Eric Kuster, vice president of safety, education and compliance at the Propane Education & Research Council (PERC), announced plans underway to make workforce training and certification better, faster, and cheaper.
Growmark Acquires Terminal From Plains LPG Services
Sunday, December 15, 2019
(December 16, 2019) — Retail and wholesale propane customers in the tristate area of Iowa, Illinois, and Missouri will soon see a new name on the terminal outside Fort Madison, Iowa. Growmark Inc. (Bloomington, Ill.) has reached an agreement with Plains LPG Services LP to acquire the facility. Growmark, a farmer-owned cooperative, owns five other terminals in Iowa, South Dakota, Ohio, and Missouri.
Wisconsin Attorney General Supports Line 5 Shut Down
Thursday, December 12, 2019
(December 13, 2019) — Wisconsin Public Radio (WPR) reports that two attorneys general are supporting Michigan’s legal moves to shut down Enbridge Inc.’s (Calgary) Line 5 pipeline that runs under the Straits of Mackinac. They include Wisconsin Attorney Gen. Josh Kaul and California’s Xavier Becerra. They join fellow Democrat Dana Nessel, Michigan’s attorney general, in support of a lawsuit asking a state court to rule that operation of Line 5 under a 1953 easement agreement with Michigan violates the public trust doctrine.
Propane Industry Urges Administration To Complete Review Overhaul
Wednesday, December 11, 2019
(December 11, 2019) — More than 30 industry groups have called on the White House to finish a regulatory overhaul that would make it easier to clear federal environmental approval for large infrastructure projects such as pipelines and road expansions, Reuters reports. The 33 organizations, including the U.S.
2020 Marks Changes For Autogas Refueling
Monday, December 9, 2019
(December 9, 2019) — Alliance AutoGas notes that big changes are coming for autogas refueling in 2020. For decades there have been a variety of valves available, such as the ACME, which have been used for fueling propane vehicles. However, new NFPA 58 guidelines for next year specify that the propane industry will adopt the K15 connection for all future autogas vehicles reinstated into service, purchased, or converted after Jan.
U.S. Oil Production Growth Heading for Major Showdown
Wednesday, December 4, 2019
(December 4, 2019) — U.S. shale production, the chief source of the rapid growth that made the U.S. the world’s largest oil producer, is slowing down fast, says a new report by the business information provider IHS Markit. Noted is that shale production, the engine driving rapid growth in recent years, is entering a new era of moderation in growth as producers focus on greater capital discipline and shareholder returns.
NPGA and State Associations Collaborate to Support Propane Marketers
Monday, December 2, 2019
(December 2, 2019) — The National Propane Gas Association (NPGA) reports it has joined with state association leaders to communicate the efforts of the industry to ramp up propane deliveries. The effort is in response to weeks-long high demand for propane across the Midwest. Marketers in the region have been experiencing heavy calls for fuel from both agricultural and residential customers.
Farmer Woes: 2019 Corn Harvest Tremendous Struggle for Some
Monday, December 2, 2019
(December 2, 2019) — With a significant amount of corn still in the fields of the U.S. Northern Plains in mid-November, the harvest nonetheless threatened to stall, MarketsFarm analyst Bruce Burnett told the agriculture news publication Western Producer. Burnett noted the corn harvest was being slowed in some cases by propane transportation constraints that in turn caused issues for farmers trying to quickly acquire fuel for their grain dryers.
Higher Propylene Prices Have Flex-Feed Crackers Favoring LPG
Thursday, November 21, 2019
(November 21, 2019) — The petrochemical market information provider ICIS reports that a number of flex-feed crackers are likely to continue favoring LPG as a feedstock because costs for propane and butane remain at a relatively small spread to those for ethane, and because of higher coproduct prices for propylene.