COMMENTARY Postings Mixed
Saturday, November 29, 2014
While principal postings were mixed Tuesday, Nov. 25, gains outnumbered losses, although many prices were unchanged compared to the Monday email Update. Most Dixie Pipeline postings trended higher and Midwest prices either lost ground or held firm.

Postings on the Dixie at Apex, N.C. climbed a half cent to 2 cents or remained the same, and prices shifted to a low of 89.64 cents and a high of 91.00 cents/gal. At Conway, Kan., postings shed a penny or did not move, and prices were from 82.82 to 85.51 cents.
Tesoro to Provide Line Item Assessment for LPG Sales
Saturday, November 29, 2014
Tesoro Corp. (San Antonio, Texas) has released a plan for a cap-and-trade assessment line item on all invoices for LPG sales in an effort to provide greater transparency, reports the Western Propane Gas Association. The amount will be linked to the prior-day OPIS California cap-at-the-rack assessment.
ARRO Autogas, Expo Propane Open 24/7 Station Near LAX
Saturday, November 29, 2014
Propane fuel provider ARRO Autogas (Paso Robles, Calif.), in partnership with Expo Propane (Bellflower, Calif.), has opened the first public refueling station open 24 hours a day in the Los Angeles International Airport (LAX) area. Located in Inglewood—six minutes from the main Century Boulevard entrance of LAX and near the 405 and 105 freeway corridors—the ARRO Autogas-branded station provides shuttles, ride share vans, and other alternative fuel autogas fleets in and around the airport with convenient, all-hours propane refueling.
Enterprise Invokes Allocation On MAPL East and West Legs
Saturday, November 29, 2014
Enterprise Products will place the Mid-America Pipeline’s east and west legs on allocation effective Dec. 1 at 7 a.m. In a notice to shippers Nov. 20, Enterprise noted that recent December nominations exceeded pipeline capacity. Currently, allocation is not terminal-specific nor is it a daily allocation. Enterprise is asking shippers to, as much as possible, lift their volumes ratably through December to assure all gallons can be delivered. The company is also encouraging weekend and evening liftings during off-peak times to minimize wait times.
U.S. Propane Inventories Rise 0.1 MMbbl
Monday, November 24, 2014
U.S. propane stocks the week ended Nov. 14 increased by 0.1 MMbbl to stand at 81.2 MMbbl, according to the Energy Information Administration (EIA) in its Nov. 19 “This Week in Petroleum” report. As of that reporting period, the nation’s inventories stood 22.8 MMbbl, or 39%, higher than a year ago. Gulf Coast volumes rose by 0.4 MMbbl, while the Midwest declined by 0.3 MMbbl. East Coast and Rocky Mountain/West Coast supplies remained unchanged. Propylene non-fuel-use stocks represented 3.7% of total inventories, up from 3.1% the previous week.
Topping Off November 2...
Monday, November 24, 2014
…To showcase propane’s versatility and benefits to landscape contractors, the Propane Education & Research Council has released a new online video about landscaping in the “Straight Talk” series of case studies at propane.com/straight-talk. Charles and Kelly Reid, owners of Sodfather Landscape Contractors (Spartanburg, S.C.), transitioned to propane-powered mowers and they provide a testimonial about their experience using clean, American-made propane…
Daesung Tankless Water Heaters Recalled Due to Fire Hazard
Monday, November 24, 2014
Challenger Supply Holdings (Fort Worth, Texas), in cooperation with the U.S. Consumer Product Safety Commission and Health Canada, is recalling about 29,000 tankless gas water heaters in the U.S. and 2200 units in Canada. The water heaters can overheat, posing a fire hazard. The manufacturer is Daesung Celtic Enersys Co. Ltd. of Chungbuk, South Korea.
Energy Transfer, Regency To Construct NGL Pipeline
Monday, November 24, 2014
Dallas-based Energy Transfer Partners LP and Regency Energy Partners LP said Nov. 17 that their joint venture, Lone Star NGL LLC, has board approval to construct a 533-mile, 24-in. and 30-in. NGL pipeline from the Permian Basin to Mont Belvieu. A second project will convert Lone Star’s existing West Texas 12-in. NGL pipeline into crude oil/condensate service.
PERC Approves $36.1-Million Spending Plan for 2015
Monday, November 24, 2014
The Propane Education & Research Council (PERC), meeting in Sarasota, Fla. Nov. 6-7, approved a $36.1-million budget for 2015 that will fund safety and training programs and the research and development of new appliances, equipment, and vehicles. The spending plan includes $20.9 million for program activities, allocating 60% to research and development, 15% to safety efforts, and 25% to training. The council’s fourth major program area, consumer education, has been restricted since August 2009.
Global Energy Markets’ Strife Escalates
Monday, November 24, 2014
Oil prices recently hit a four-year low after Saudi Arabia, OPEC’s leading member, slashed its contract price for U.S. customers in a further sign of an escalating war for control of global energy markets.

Brent crude, the benchmark against which nearly half of the world’s petroleum is priced, fell almost 3% to around $82 (U.S.) per barrel in London before recovering slightly.
September Exports Climb 9.5%, Imports Jump
Monday, November 24, 2014
Propane exports from the U.S. in September reached 13,725,905 bbl, up 9.5%, or 1,193,164 bbl, from August’s 12,532,741 bbl, reports the U.S. Department of Commerce (DOC). Compared to September 2013, exports were higher by a steep 36.7%, with volumes adding 3,683,238 bbl.

Propane imports to the nation also climbed month over month. September imports, at 3,135,816 bbl, improved 35.7% compared to August, rising 824,894 bbl. In a year-over-year comparison, imports jumped 79.8%, or by 1,392,055 bbl.
Conway Spots Drop Nearly a Dime, Belvieu Lower
Monday, November 24, 2014
Spot values at Conway, Kan. and Mont Belvieu took another hit Thursday as Midwest propane plunged nearly 10 cents and trading at the Texas hub fell 4.626 to 4.75 cents compared to the Monday email Update. The losses follow the markets moving down 3.75 cents at Conway and 2.25 cents at Mont Belvieu Monday. Even as arctic air sweeps three-quarters of the nation and snowfall is being measured in feet, spots since early November have dived 20.875 cents at Conway and 15.375 cents at Belvieu.
New York Issues Draft Permit For Finger Lakes Cavern Storage
Monday, November 24, 2014
New York State’s Department of Environmental Conservation (DEC) has issued a draft permit for Crestwood Midstream Partners’ long-delayed Finger Lakes initiative, a project that would see 2.1 MMbbl of propane and butane stored in salt caverns in Schuyler County, N.Y. However, DEC emphasizes that release of the draft permit does not signal approval, or even a timely decision on the project, which has been under review for five years.
COMMENTARY Postings Plunge
Monday, November 24, 2014
Principal postings in the Midwest were in freefall Thursday as prices plunged 10.5 cents to as much as 13.75 cents compared to the Monday email Update. Elsewhere, losses, although not as severe, nonetheless in many cases were a nickel to 7 cents lower. The moves down follow many postings giving up 3.75 to 4.5 cents early in the week.
Canadian Inventories Barely Changed
Monday, November 24, 2014
Canadian underground inventories increased just 0.5%, or 9.3 Mcm, in October to stand at 1905.9 Mcm, the equivalent of 12 MMbbl, as of Nov. 1, according to the National Energy Board (NEB). The slight build followed inventories rising 6.7% in September. Compared to October 2013, Canada’s propane supplies were 50%, or 634.9 Mcm, higher.
November Topping Off...
Sunday, November 23, 2014
…Yellowstone National Park is the latest national park to partner with the Propane Education & Research Council (PERC) to help the National Park Service meet its sustainability goals. Yellowstone is providing performance feedback on propane-powered equipment donated by PERC, which is being used to improve and promote the technology. A video on PERC efforts is available at www.propane.com/about-perc/partnering-with-organizations/...
Sunoco Logistics to Invest $2.5 Billion for Mariner East 2
Sunday, November 23, 2014
Sunoco Logistics Partners LP (Philadelphia) has completed a successful open season for Sunoco Pipeline LP’s Mariner East 2 project, the second phase of the company’s broader plan to provide pipeline transportation from the Marcellus and Utica shales.
ONEOK Completes Projects Serving Bakken and Niobrara
Sunday, November 23, 2014
ONEOK Partners LP (Tulsa) has completed more than $500 million in capital growth projects, including the 100-MMcfd Garden Creek III natural gas processing plant and related infrastructure in McKenzie County, N.D. Also complete is the expansion of the Bakken Natural Gas Liquids Pipeline and the Niobrara NGL Lateral. The projects are part of the company’s $8.3-billion to $9-billion capital growth program through 2016.
Enterprise, Oiltanking Partners Enter Subsidiary Merger Agreement
Sunday, November 23, 2014
Houston-based Enterprise Products Partners LP and Oiltanking Partners LP have entered a merger agreement under which Oiltanking would merge with a subsidiary of Enterprise in a unit-for-unit exchange. Approval and adoption of the merger requires approval by holders of a majority of the outstanding Oiltanking Partners common units.
Midmonth to Midmonth: Expect the Unexpected
Sunday, November 23, 2014
Heading into the winter heating season, the market has produced some very unexpected pricing swings. As the Saudis decided to set in place a new pricing strategy, coupled with a downturn in the Chinese economy and a reduction in demand, the energy complex was put into turmoil. This resulted in price moves that had not been foreseen.
Lone Star to Construct 3rd Fractionator at Mont Belvieu
Sunday, November 23, 2014
Dallas-based Energy Transfer Partners LP (ETP) and Regency Energy Partners LP said Nov. 5 that their joint venture, Lone Star NGL LLC, is constructing a third 100,000-bbld fractionation facility at Mont Belvieu. The fractionator is fully subscribed by multiple long-term contracts and is necessary to handle increasing NGL barrels delivered via Energy Transfer’s and Lone Star’s raw-make pipeline systems that gather NGLs from the Permian, Eagle Ford, and North Texas production areas.
Inhofe Praises EPW Report On Hydraulic Fracturing
Sunday, November 23, 2014
U.S. Sen. Jim Inhofe (R-Okla.), senior member of the Senate Environment and Public Works (EPW) Committee, is praising a committee Republican report he asserts dispels the falsehoods perpetuated by the Obama administration and environmental extremists about hydraulic fracturing. He adds that environmental activists insist that the well-stimulation technique has a devastating impact on the environment, but decades of studies and empirical evidence have debunked these claims.