Propane Industry News

Albany, N.Y.-based Transparency Market Research has released a new report that forecasts the global natural gas liquid market is likely to grow at a compound annual growth rate of 7.16% between 2016 and 2024. According to the report, the global NGL market stood at 7982.63 kilo barrels/day (7,982,630 bbld) in 2015 and is expected to reach 14,806.59 kilo barrels/day (14,806,590 bbld) over the next eight years.

Williams (Tulsa) said March 23 it had started the second offgas liquids extraction plant to serve its Canadian midstream and petrochemical complex. The new plant boosts domestic production of petchem feedstocks and significantly reduces emissions in the oil sands production process while recovering valuable natural gas liquids and olefins.

If the U.S. prohibited hydraulic fracturing tomorrow the nation would lose massive amounts of jobs, investments, and domestic oil and gas reserves—both those proven today and others in the future, writes Paul Sullivan, professor of economics at the National Defense University and adjunct professor of security studies at Georgetown University. He adds that natural gas has been taking the place of coal in electricity production.

U.S. Gulf of Mexico crude oil production is estimated to increase to record high levels in 2017, even as oil prices remain low. The Energy Information Administration (EIA) projects Gulf production will average 1.63 MMbbld in 2016 and 1.79 MMbbld in 2017, reaching 1.91 MMbbld in December 2017. Gulf of Mexico production is expected to account for 18% and 21% of total forecast U.S. crude oil production in 2016 and 2017, respectively.

The Energy Information Administration (EIA) said March 9 that U.S. crude oil production in December 2015 continued to decline as production reached its lowest level since November 2014. Production also fell from year-ago levels for the first time in more than four years. This continued production decline is the result of lower crude prices, which has fallen more than 70% since the summer of 2014.

Spectra Energy Corp. (Houston) said April 4 its subsidiary, Westcoast Energy Inc., has entered into a definitive agreement to sell its ownership interests in Spectra Energy’s Canadian NGL business to Plains All American Pipeline LP (Houston) subsidiary Plains Midstream Canada ULC (PMC). A cash purchase price of about $150 million is reported, plus customary closing adjustments.

The Virgin Islands Water and Power Authority’s (WAPA) project to convert to propane as a primary source of fuel to generate electricity has achieved another milestone on Saint Croix. WAPA April 5 introduced propane to one of its retrofitted generating units as the conversion from fueloil to propane continues to take shape. WAPA and Vitol oversaw the commissioning of Unit 20.

Five years ago, Iran produced 3.5 million barrels of oil per day. Today, it produces only three-quarters of that amount, but with the end of sanctions against Iran, output should be boosted. Iran sits atop the world’s second-largest gas reserves and is a top-three producer, according to the U.S. Energy Information Administration. The country needs the gas for its own economy since two-thirds of its electricity is generated by burning it.

…The 2015 Sales of Odorized Propane Report survey materials have been mailed by the American Petroleum Institute (API). The due date for returning the survey is April 18. Each company will receive a personalized survey that includes a unique identifier. Materials are mailed in an API envelope that states, “Enclosed is your 2015 Sales of Propane Report. Those responding are reminded to return both pages of the survey form. All companies that complete the survey will receive a copy of the 2014 report this June.”…

The presence of an underground natural gas transmission pipeline does not affect the sales prices or value of residential properties, according to a new study, “Pipeline Impact to Property Value and Property Insurability,” conducted by Integra Realty Resources on behalf of the INGAA Foundation.

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. The new units are being deployed in April. Nestlé propane trucks make deliveries to customers across the country, including Los Angeles;

Bimbo Bakeries USA (Horsham, Pa.) is delivering its bread and baked goods in vehicles fueled by emissions-reducing, domestically produced propane autogas. The company’s 84 new Ford F-59 trucks, equipped with Roush CleanTech fuel technology, operate in three of the company’s major markets. “Bimbo Bakeries USA introduced propane autogas vehicles into our Chicago, Denver, and Washington, D.C.

Total U.S. petroleum product exports continued to increase in 2015, and were up 467,000 bbld from 2014 to 4.3 MMbbld, driven by rising exports of distillate fuel, motor gasoline, and propane, reports the Energy Information Administration (EIA). Mexico and the region encompassing both Central and South America continued to be major recipients of U.S. petroleum product exports. Exports to South America increased in 2015 because of

Average to Match Brent The Energy Information Administration’s (EIA) latest “Short-Term Energy Outlook” forecasts that North Sea Brent crude oil prices will average $34/bbl in 2016 and $40/bbl in 2017, $3/bbl and $10/bbl lower, respectively, than expected in the previous forecast. EIA expects West Texas Intermediate (WTI) prices will average the same as Brent in 2016 and 2017, based on the assumption that the two crudes will compete in the U.S.

Sunoco Logistics Partners LP (Philadelphia) said March 10 that its Mariner East 1, the first pipeline in the larger Mariner East system, was transporting propane and ethane to the Marcus Hook Industrial Complex and is approaching full operations as it completes loading of the first waterborne ethane shipment. Mariner East 1 is the first phase of the multifaceted Mariner East project.

Pembina Pipeline Corp. (Calgary) has officially abandoned plans to develop a $500-million American West Coast propane export terminal at the Port of Portland, Ore. The news came in the company’s annual report, which stated it was dropping the project.

Charlie Brown has joined Rutherford Equipment Inc. (Covington, Ga.) as an outside sales representative, serving customers in eastern and central North Carolina as well as portions of South Carolina. Brown has 40 years of experience in the propane industry, and has held a number of positions including plant manager, division manager, division sales manager, and account manager.

A majority of Americans say government and industry should collaborate to strengthen U.S. energy security and energy independence, according to the latest edition of the University of Texas Energy Poll. The semiannual survey polled 2043 Americans on a wide array of energy issues in January. Among the 58% of survey respondents who support such a cooperative approach, there are some striking differences along political party lines, however.

The U.S. Chamber of Commerce notes that hydraulic fracturing’s safety record is so good that not even a study funded by an anti-hydraulic fracturing foundation could find evidence that it contaminates drinking water. The Chamber explains that in 2012 the University of Cincinnati started testing Ohio wells to determine if hydraulic fracturing was causing water contamination.

The Propane Education & Research Council (PERC) has opened its 2016 Propane Farm Incentive Program, a nationwide research and demonstration initiative offering farmers purchase incentives of up to $5000 toward new propane-powered farm equipment. Sponsored by PERC, the program includes a 10-cent-per-square-foot propane-fueled agricultural heating system incentive, which helps offset the upfront costs of new equipment in exchange for real-world performance data and customer feedback.

MFA Oil Co. (Columbia, Mo.) has acquired S&S Oil and Propane Co. Inc. of Emporia, Kan., a propane, refined fuels, and lubricants retailer. The transaction includes 17 propane storage facilities, five bulk fuel storage terminals, five card refueling locations, and an office in Emporia. Financial details were not released. The deal marked the fourth acquisition for MFA Oil during its current fiscal year.