…BP’s 413,000-bbld Whiting, Ind. refinery is expected to be shut down for at least a month for repairs. A malfunction is reported to have damaged a heavy sour crude oil unit at the facility, known as Pipestill 12, centerpiece of a refit of the refinery to run more sour crude from Canada’s oil sands fields in Alberta. Examination of the damaged crude unit was continuing as of press time…
The U.S. Department of Energy (DOE) has issued a final authorization to American LNG Marketing LLC to export domestically produced liquefied natural gas to countries that do not have a Free Trade Agreement with the U.S. American LNG is authorized to export LNG up to the equivalent of 0.008 Bcfd of natural gas for a period of 20 years from its liquefaction facility near Medley, Fla. in Miami-Dade County using approved ISO LNG carriers.
Kinder Morgan Inc. (KMI, Houston) is expanding its fleet of Jones Act product tankers and has signed a $568-million agreement with Philly Tankers LLC for the construction of four 50,000-deadweight-ton Tier II tankers. The vessels will be built at the Aker Philadelphia Shipyard in Philadelphia. The four new vessels will increase Kinder Morgan’s Jones Act tanker fleet to 16 ships by late 2017, of which 14 are under long-term contracts.
A mid-year trade report released Aug. 5 by the U.S. Department of Commerce (DOC) shows that the oil and natural gas industry continues to drive economic gains in 2015, a trend that could accelerate under free trade policies, reports the American Petroleum Institute (API). “Despite a very competitive global market, the U.S. energy revolution continues to push our trade balance in a positive direction,” said John Felmy, API chief economist.
Canadian underground propane inventories in July climbed 8.5% to post a month-over-month gain of
116.1 Mcm, according to the National Energy Board (NEB). As of Aug. 1, stocks stood at 1484.7 Mcm, the
equivalent of 9.4 MMbbl. Compared to a year earlier, volumes were higher by 1.8%, or 25.7 Mcm.

 

CSA Group, a Canada-based standards development organization and a global provider of testing and certification services, has published new editions of CSA B149.1-15: Natural Gas and Propane Installation Code and CSA B149.2-15: Propane Storage and Handling Code.
Hess Corp. (New York, N.Y.) has completed the sale of a 50% interest in Bakken midstream assets to New York City-based Global Infrastructure Partners for cash consideration of $2.675 billion. As planned, Hess and Global have created a midstream joint venture—Hess Infrastructure Partners.
The Propane Council of Texas, a nonprofit organization dedicated to educating the public on cleaner-burning propane, seeks to assist the landscape industry adopt greener operations while saving on fuel and operational costs. The council attended the Nursery/Landscape Expo Aug. 13-15 in Dallas hosted by the Texas Nursery & Landscape Association in an effort to extol the benefits of propane.
Energy players at press time were voicing dismay as NYMEX crude oil futures failed to hang on to gains that were prompted by the International Energy Agency (IEA) raising its global oil demand forecast. IEA said worldwide demand would grow by 1.6 MMbbld this year, an upward revision of 200,000 bbld from its previous forecast.
The National Center for Policy Analysis (NCPA) has published a map that tracks hydraulic fracturing bans, restrictions, and other hostile actions by government that seek to restrict or ban the revolutionary technique used to enhance U.S. oil and gas production. The map will be an ongoing project that tracks the status of federal, state, and local efforts to restrict the practice across the nation.
Since January 2012, natural gas production in the Marcellus and Utica regions has accounted for 85% of the increase in natural gas production reported in the Energy Information Administration’s (EIA) “Drilling Productivity Report” and has driven recent growth in total U.S. natural gas production.
Three new school buses fueled by clean-burning and affordable propane autogas will be in operation for the 2015-2016 school year at Indiana’s DeKalb County Central United School District. DeKalb Central United Schools, DeKalb County’s largest school district, is replacing 12-year-old diesel buses with new Blue Bird propane Vision buses. The district purchased the Type C school buses from MacAllister Bus Sales, Indiana’s Blue Bird dealer.
Management of Pierce Pepin Cooperative Services (PPCS; Ellsworth, Wis.) and the board of directors have agreed to sell Pierce Pepin Propane Services to River Country Cooperative of Inver Grove Heights, Minn. The closing date will be Aug. 31. Details of the agreement were not released. PPCS notes it entered the propane business in 1999, positioning itself for the emerging fuel cell technology that was developing.
A group of Connecticut’s Shoreline Republican state legislators are proposing legislation to eliminate the state’s gross receipts tax on propane, reports the office of state Sen. Paul Formica. Connecticut assesses a tax on fuel delivered to a customer who uses a propane tank connected to a generator. The 8.81% tax is assessed on the delivery ticket, even if the propane tank also supplies exempt uses such as a home’s space heating equipment, a cook stove, water heater, or pool.
The Propane Education & Research Council (PERC) has joined a national task force promoting the addition of alternative fuel vehicles to emergency response fleets. The Initiative for Resiliency in Energy through Vehicles (IREV) is one of 11 projects funded by the U.S. Department of Energy’s Clean Cities program to accelerate the growth of the alternative fuel vehicles market.
President Obama has signed into law a bill making it easier for Americans to use propane autogas. Included in the extension of the U.S. highway bill is an excise tax equalization provision that permanently reduces the tax rate on autogas and levels the playing field for all alternative fuels, notes the National Propane Gas Association (NPGA). Highway use propane produces 72% of the energy output of gasoline, but was taxed at the same 18.3 cents per gallon rate.
U.S. propane stocks the week ended Aug. 7 jumped 2.4 MMbbl to reach 92.8 MMbbl, according to the Energy Information Administration’s (EIA) Aug. 12 “This Week in Petroleum” report. As of the last reporting period, volumes stood 22.5 MMbbl, or 32%, higher than a year ago. Nearly all of the overall inventory gain was in the Gulf Coast, which saw a 2.5-MMbbl increase. The Rocky Mountain/West Coast region stepped up just 0.2 MMbbl, while the East Coast declined 0.2 MMbbl and the Midwest remained unchanged.
U.S. propane stocks gained another 1.8 MMbbl the week ended July 24 to rise to 89.4 MMbbl, according to the Energy Information Administration (EIA) in its July 29 “This Week in Petroleum” report. As of
…AGA Systems LLC (Kaysville, Utah) is offering a new bi-fuel/propane conversion system for the General Motors direct-injection 5.3-liter engine. The DuraDrive DI-LPG uses the same technology that AGA Systems developed for its Environmental Protection Agency-certified CNG system for the 5.3-liter power plant.
Southcross Energy Partners LP (Dallas, Texas) has completed a 60,000-bbld Y-grade pipeline connecting its Woodsboro, Texas processing facility to Southcross Holdings LP’s 63,000-bbld Robstown fractionator near Corpus Christi, Texas. The company has also completed a 20,000-bbld propane pipeline from its Bonnie View fractionator to the Corpus Christi area for delivery to end-use customers.
Meeting for the first time since the end of a restriction on its consumer education activities, the Propane Education & Research Council (PERC) has formed a task force to develop a comprehensive communications strategy designed “to inform and educate the public about safety and other issues associated with the use of propane,” a priority of the Propane Education and Research Act of 1996, the legislation that created PERC.
Combined energy legislation introduced in the U.S. Senate, the Offshore Production and Energizing National Security Act (OPENS Act), would lift the ban on crude oil exports, provide for revenue sharing in the Alaska Outer Continental Shelf (OCS), and increase access to additional resources by requiring a minimum of three lease sales in each of the Beaufort, Chukchi, and Cook Inlet planning areas during any five-year period.