LP Gas, April 2017

an agricultural state and people in agriculture have known about propane since the 1940s and 1950s Nows the time to promote that Optimizing customers Matheson which operates in 38 states is always seeking autogas opportunities says Dave Bertelsen its national propane product manager School buses and other vehicle applications could be the saving grace for the industry he says This is especially true amid winters that lack sufficient heating degree days like in 2016 17 though margins at Matheson have been strong Our commercial business is strong and growing sparked in part by forklift and warehouse heating accounts Bertelsen says Its just a matter of optimizing those customers The residential market is struggling because of conservation degree days and natural gas expansion he adds Mathesons load was down 25 percent to 30 percent along the East Coast gallons burned in the Ohio River Valley fell 20 percent We have a pretty significant outside sales force Bertelsen says Were adding a couple more bullets into the chamber to seek additional avenues for propane use Mathesons venture into Californias wine country is reaping success as about 150 vineyards are utilizing propane for utility trailers warehouses and forklifts Also in California gallons were up 25 percent at the fifth generation family owned Sheldon Gas Co We had a very nice heating season compared to the last five years says CFO and co owner Jill Hopkins The rain and cold dont always go together but this year the Golden State had plenty of both When its raining here it gives the illusion of winter she adds Its been a long time since weve had normal rain then we had huge amounts over a period of time over and over again Monthly US propane product supplied and exports Million barrels per day product supplied proxy for demand gross exports 00 2010 2011 2012 2013 2015 2014 2016 Source U S Energy Information Administration Petroleum Supply Monthly 20 15 10 05 Note Inventories include propane propylene for fuel use only New and expanded U S export terminals and a growing shipping fleet have increased the capacity to export propane especially during winter months And while the intense rainfall alleviated some of Californias lingering drought concerns it also produced logistical obstacles We had some challenges in our deliveries mudslides road washouts and flooding We drove a lot of miles to We had a very nice heating season compared to the last five years JILL HOPKINS California based Sheldon Gas keep those customers warm and dry Hopkins explains We were really busy We were pushed but nobody was complaining Because of widespread road closures Sheldon Gas wasnt depending on transports to deliver gas railroad tankers were rolled in instead Residential is the heart of everything for us but like everyone else weve been looking to expand our markets Hopkins says Our biggest opportunity in this area is agricultural pumps WINTER RECAP We live in a big wine production area Walnuts and almonds are commonly grown in addition to grapes and propane powered equipment assists farmers in complying with state antipollution regulations pertaining to diesel fumes Californias Delta Liquid Energy also endured mudslide induced traffic detours during a respectable heating season according to Robert Jacobs its vice president of business enterprises We had big issues on the Big Sur coastline to get to our customers up there he says The Northwest experienced one of its coldest and wettest winters Global Gas Alexander says Snowfalls accumulated leading to tight availability of transports and tankers in a region not served by pipelines They rely a lot more on trucks and rail than we do elsewhere in the country she says NPGAs Supply and Infrastructure Task Force mobilized by sending letters to railroad executives asking them to make propane shipments a priority a tactic that Alexander says got traction and helped to ensure a suitable supply flow LPG www LPGasmagazine com April 2017 LPGas 21