By Joe Colaneri . . .

Paul Ryan’s new House speakership promises to challenge the propane industry politically as it hasn’t been challenged by any speaker, Democrat or Republican, in a generation. The leadership changes on Capitol Hill will bring a new sense of urgency to the policy debates and all but guarantee that tax reform will be a top agenda item in this and the next Congress or until it is enacted.

Speaker Ryan Will Challenge the Political Status Quo
China-based Hengli Petrochemical (Dalian) Refinery has awarded a contract to Chicago Bridge & Iron Co. (CB&I; The Woodlands, Texas) to use its Catofin catalytic dehydrogenation technology for a new propane and butane dehydrogenation plant to be constructed in Dalian, Liaoning Province.
The energy consultancy Wood Mackenzie reports that as the Colorado Supreme Court considers a case on whether state or local governments have the authority to regulate hydraulic fracturing, from $750,000 to $1 million per well in potential tax benefit could be lost to the state, with more than $3 million per well foregone in overall energy development spending.
Complying with a provision in the new highway bill, Fixing America’s Surface Transportation (FAST) Act, the Pipeline and Hazardous Materials Safety Administration (PHMSA) has withdrawn a notice of proposed rulemaking that would have amended hazardous materials regulations regarding the transportation of flammable liquid material in unprotected external product piping, commonly known as wet lines.
Leaders of the American Trucking Associations (ATA) are praising the U.S. House and Senate for coming together on a long-term highway funding bill that advances the cause of trucking safety and efficiency. Signed into law by President Obama Dec.
Enterprise Products Partners LP (Houston) has completed the final phase of its Houston Ship Channel LPG export terminal expansion, completed construction and initiated operation of the remaining leg of the Aegis pipeline, and has agreed to provide pipeline and marine terminal services to load an export of U.S.-produced crude oil. The LPG terminal expansion is among $7.8 billion in capital growth projects Enterprise expects to complete and bring into service by the end of 2017.
TransCanada Corp. (Calgary) Jan. 6 filed a notice of intent to initiate a claim under Chapter 11 of the North American Free Trade Agreement (NAFTA) in response to the Obama administration’s decision to deny a Presidential Permit for the Keystone XL pipeline on the basis that the denial was arbitrary and unjustified. In addition, TransCanada has filed a lawsuit in the U.S.
The Gas Processors Association (GPA) reports it secured a legislative victory when President Obama signed into law the federal highway bill, H.R. 22, the Fixing America’s Surface Transportation Act, or FAST Act. GPA joined with a coalition of trade associations to support two separate permit streamlining bills, H.R. 348, the Responsibly and Professionally Invigorating Development (RAPID) Act and S. 280, the Federal Permitting Improvement Act of 2015.
Suburban Propane Partners LP (Whippany, N.J.) has acquired Propane USA, a propane marketer with headquarters in Margate Fla., and its affiliate companies for a reported $45 million. The purchase was funded entirely from cash on hand. Propane USA will add about 7600 residential and commercial customers to Suburban Propane and about 4.7 MMgal. of retail propane sales to the partnership’s Florida operations.
AltaGas Ltd. (Calgary) has entered into a definitive project agreement for the development of a propane export facility in British Columbia. The company reports it is negotiating formal agreements and working on consultations with First Nations and stakeholders to commence the regulatory and permitting process for the export terminal, a facility that will be designed to initially ship 1.2 million tonnes a year.
WASHINGTON (December 21, 2015) - The Propane Education & Research Council (PERC), announced via a conference call meeting Dec. 11 that it had approved $665,000 for the 2016 Marketer Technology and Sales Training Program for an estimated 60 classes to give marketers information and techniques that they can use to drive new demand for propane in traditional and emerging markets.
PERC logo
The Propane Education & Research Council (PERC) has selected The Richards Group (Dallas) as the agency for its multimillion-dollar consumer education campaign that will roll out in 2016. The Richards Group will assist PERC in carrying out an integrated campaign designed to persuade existing propane customers to buy additional propane-fueled equipment and prospective customers to switch to propane for a variety of applications in the home, including space heating, water heating, cooking, clothes drying, and fireplaces.
The Federal Motor Carrier Safety Administration (FMCSA) has released its final rule mandating the use of electronic logs. The regulation was published in the Federal Register Dec. 16. This started the clock on a two-year compliance deadline which will make the devices mandatory beginning December 2017, notes Land Line magazine, a publication of the Owner-Operator Independent Drivers Association (OOIDA).
Phillips 66 (Houston) has begun operations at its new 100,000-bbld NGL fractionator located at the company’s Sweeny Complex in Old Ocean, Texas. Sweeny Fractionator One supplies purity ethane and other liquefied petroleum gases to the petrochemical industry and heating markets. It is supported by 250 miles of new pipelines and a multimillion-barrel storage cavern complex.
Alliance AutoGas is pursuing a California Air Resources Board (CARB) certification for the 2016 Ford Transit, commenting that official Environmental Protection Agency (EPA) testing has demonstrated a 13% reduction in CO2 and a 33% reduction in methane emissions. EPA has identified these as the largest contributors to greenhouse gas emissions.
The new Fisher Type R222H first-stage residential REGULATOR from Emerson Process Management has a 40 percent smaller footprint for use in tight applications, such as underground tanks or limited dome space. It is UL-listed for high-pressure LP vapor service in two-stage LPG systems and designed for customers who require up to 2 MBtu/hr flow rates.
Deanna Sherman, current vice president of the Energy Division, Dead River Co. (South Portland, Maine), was promoted to president effective Jan. 1, 2016, when president and CEO Robert Moore retires in July 2016. He has led the company since 2008. Moore joined Dead River Co.
One year before the national presidential election, 71% of voters say they are more likely to support a candidate who supports producing more oil and natural gas—64% of Democrats and 85% of Republicans—according to a telephone poll among registered voters conducted for the American Petroleum Institute (API) by Harris Poll.
LPG continues to save lives and could save many more if it were made available to more people, asserts Forbes magazine. The publication in November quotes the World Health Organization’s Global Burden of Disease project that smoke from solid cooking fuel in poorer countries is the fourth most important risk factor impacting global health—just below smoking and just above alcohol consumption.
Extensive analysis in Colorado, which requires water sampling both before and after energy drilling, shows no evidence of groundwater contamination that can be attributed to hydraulic fracturing. Earlier, methane contamination was found in a few wells and attributed to oil and gas drilling. However, research revealed that the contamination was likely due to poorly sealed well bores, a practice referred to as cement bonding.
International and U.S. upstream oil companies wrote down $38 billion in assets in the third quarter of 2015, the largest for any quarter since at least 2008, reports the Energy Information Administration (EIA). Low oil prices continue to have a significant effect on the value of companies’ assets and future prospects, as well as on current value.
The American Petroleum Institute (API) and America’s Natural Gas Alliance (ANGA) will combine into a single trade association effective Jan. 1 following the approval of both of the boards of directors. The combined association will continue ANGA’s mission under API. “There is a natural synergy between our organizations,” said Jack Gerard, API CEO.