LP Gas, April 2014

WINTER OF 2013 14 THE CHALLENGES THE SOLUTIONS EIAs annual household propane heating expense estimates for 2013 14 in the Northeast and Midwest posted significant increases when compared to 2012 13 This year Last year Northeast 2412 1940 up 243 percent Midwest 2212 1333 up 659 percent This years per gallon pricing estimates for propane were at a higher level Northeast 347 per gallon up 155 percent Midwest 262 per gallon up 506 percent Propane consumption estimates for 2013 14 in the Northeast and Midwest experienced a rise compared to last years usage figures according to EIA Northeast 6951 gallons up 77 percent Midwest 8443 gallons up 102 percent Feb 7 For the first time FERC invokes its emergency authority under the Interstate Commerce Act and directs Enterprise TE Products Pipeline Co to prioritize propane shipments to the Midwest and Northeast Feb 11 FERC votes to extend the priority treatment of propane shipments to the Midwest and Northeast by one week through Feb 21 NPGA says 500000 barrels of propane are headed to the affected regions PROPANE SUPPLY INFRASTRUCTURE NEWS NPGA chief details industry concerns at congressional hearing on energy NPGA President and CEO Rick Roldan testified at a congressional infrastructure needs in the United States Roldan testified alongside representatives from the pipeline natural gas environmental railroad and trucking industries as well as the administrator of the U S Energy Information Gary France of France Propane Service and NPGA Executive Committee member Tom Van Buren of Ferrell North America also attended the hearing Questions ranged from railroad safety to prices to climate change according to NPGA Most of the hearing addressed the propane supply distribution challenges faced this winter Federal bill provides more flexibility for home heating deliveries President Barack Obama signed a bill on March 21 that extends hours of service HOS waivers for propane deliveries through May or until the propane distribution emergency ends Rep Bill Shuster R Pa first introduced the Home Heating Emergency Assistance Through Transportation Act of 2014 which passed unanimously in the House of Representatives and the Senate According to a press release the bill extends any Federal Motor Carrier Safety Administration HOS exemption issued after Feb 5 related to the delivery of propane for home heating The bill followed a hearing in the House Energy and Power Subcommittee where recommendations for improving U S fuel supply infrastructure were requested Feb 11 Republican state Sen George Maziarz joins the New York Propane Gas Association and industry leaders at a press conference asking the state to take action on current propane supply and storage infrastructure hearing in March that focused on changing energy Administration Adam Sieminski NPGA Chairman March 6 Rick Roldan president and CEO of NPGA testifies in front of Congress on the changing energy infrastructure needs in the United States He details the issues that led to the industrys supply problems throughout the winter March 21 President Barack Obama signs a federal bill that extends hours of service waivers for propane deliveries through May or until the propane distribution emergency ends behind Glassgow says A retailer in Oregon was especially concerned over the delayed railroad activity and the negative impact it had on his stocks If he doesnt get the railcars hes got to get a transport and the terminals drivers and transports are already busy It causes chaos Glassgow says Pricing was higher particularly in the mountain states causing marketers to make shorter deliveries he adds Out west we did not have the supply struggles they had back east says Don Dockstader vice president of wholesale operations for AePEX Energy based in Templeton Calif We didnt have any issues at all this year but we had a bit of a scramble in December with an early freeze Few marketers were venturing to California to augment dwindling stocks That trip is a little too far for them Dockstader says Not many marketers made it to California but I know a few of them made it to the Arizona market LPG 20 LPGas April 2014 www LPGasmagazine com