LP Gas, April 2013

WINTER ROUNDUP Continued from page 15 conditions We typically try to buy as we get accounts from our customers The ravages brought by Hurricanes Sandy and Irene plus an assortment of other climatic calamities have significantly heightened demand for propane electrical generators which in turn attract off season load says PGANE board of directors member T Michael Morrissey at Morrissey Consulting Were experiencing a record number of new installations supporting standby electrical generators Morrissey says The propane industry has an amazing ability to step in and help people when the power goes out Morrissey is based in Connecticut and he is especially pleased with how the Nutmeg States propane providers have been working together to overcome the impact of several ferocious weather systems including a winter blast that dumped 40 inches of snow Connecticut has been one of the consistently hard hit states in these incidents he says Weve had our infrastructural challenges but weve adapted to those Were a resourceful bunch of professionals were adapting and learning as we go The resilience of the industry has just been wonderful Morrissey who is also a state director for the National Propane Gas Association praised an increased presence of tanker cars We saw the rail lines perform much more strongly than theyve ever performed in the past he says The rail lines are finally seeing the opportunities that the shale plays are offering Game changing tankers The five North American makers of tankers have backorders through 2014 for 48000 new railcars according to Rail Theory Forecasts LLC a consulting firm that tracks train manufacturing levels The tanker trend is expected to continue as petroleum prospecting proliferates Building more pipelines assuming that regulatory permission is granted amid a contentious political and environmental atmosphere is a lengthy process Weve seen so much more railcar gas coming into the Northeast so we arent as dependent on the pipeline as we used to be its a huge game changer says Mike Taylor co owner of Combined Energy Services in Monticello N Y Business was up 20 percent this season It is 24 degrees and snowing right now on March 18 Last year we were walking around in T shirts and crying Taylor says The company recently added 60000 gallons of storage and it plans to further augment its capacity by 120000 gallons in 2013 I cant stress enough the importance of having enough local storage Taylor says Just in time inventory doesnt work in the Northeast in the propane business You have to fight what you learned in business school that model doesnt work A lot of retailers have added storage which is great The regions overall pace of construction projects is picking up after a four year period of decline and Taylor suggests that providing temporary heating systems for contractors on the job is yet another moneymaker for retailers Smooth operations Sales at the Schagrin Gas Co in Middletown Del rose nearly 20 percent over last years numbers Ive been able to move some gallons this year says Andrew Levinson who also serves as president of the Mid Atlantic Propane Gas Association Well take it Its been one of the smoothest winters as far as logistics Its nice to have a normal winter says John Jessup executive director of the North Carolina Propane Gas Association We had a little bit of snow but it didnt stay a long time the ability to deliver was good this year There was plenty of product As the West Virginia Propane Gas Association WVPGA wrapped up its membership meeting folks said it was a little better than last years winter They were pleased reports Tom Osina the organizations executive director A delay in the daffodils brought a welcome bouquet to the industry Its suddenly gotten cold again Osina says The beginning of spring is colder than parts of the winter were The WVPGA is accelerating a push toward autogas opportunities as the Mountain States governor is onboard with promoting propane powered school buses Pursuing off season load is an attractive route to take according to Osina You dont have to necessarily worry about what the winter is like he says Autogas is also being adopted in the Southeast along with increasing the number of inroads in the farming segment and residential appliance sales The concept appears to be attracting investors Weve had more people expressing interest in getting into the business than weve had in the past 10 years says Randy New England has seen an increase in the demand for propanepowered generators following recent storms 16 LPGas April 2013 www LPGasmagazine com