LP Gas, February 2019

in the know EABinsights LPG EDITORIAL ADVISORY BOARD Q A What advice would you give to todays young leaders already working in the propane industry Dale Delay President Cost Management Solutions Livingston TX Patrick Hyland Director of Industry Communications PERC Cleveland OH PIPELINE PROJECT A partnership with Propane Resources Q What does Mariner East 2 s launch late last year mean for the U S propane market A The propane industry is looking for Mariner East 2 ME 2 to balance supply and demand in the Northeast and Ohio Valley region of the United States For the past few years supply has been more plentiful than demand With pipeline capacity increasing to Marcus Hook facilities a traders ability to move propane out of the market increases Once the pipeline is fully functional and utilized PADD 2 likely will feel the most impact Midwest retailers will have to contend with finding gallons to replace the gallons that will go overseas from Marcus Hook This will create a volatile price situation in PADD 2 Traders will send gallons where the greatest return is possible This means any Northeast price spike likely gets blunted by gallons coming back into the market from the Marcus Hook complex Conway has no similar backup for gallons The Midwest cant be fed out of western Canada like the old days Marcus Hook is designed for gallons to leave not stay so regional pricing will need to be high enough to keep gallons in the Northeast This leaves Conway empty because there is no supply that can feed PADD 2 in a high demand situation Before ME 2 railcars flowed freely into the Ohio Valley and the Midwest Those cars will dry up as ME 2 capacity and nominations increase in 2019 It is simple math Would a trader rather work on one 100000 barrel export deal out of Marcus Hook or 100 plus railcar deals with the associated headaches of finding the railcars and getting them back LPG Take time for family life passes quickly Be bold Be innovative Challenge the status quo Dont be afraid of making mistakes Join the NPGA Benchmarking Council and learn what the future looks like from your most progressive peers Get involved with your state association with NPGA and PERC Focus on safety for you and your customers Take advantage of technology Be a propane professional Larry Osgood President Consulting Solutions LLC Monument CO Jim Renaldo Director Sales Marketing Renaldo Sales Service Inc North Collins NY Dan Richardson President CEO Conger LP Gas Tifton GA Mike Walters Vice President Safety Training Superior Energy Systems Columbia Station OH Tom Jaenicke VP of Propane Marketing Services Warm Thoughts Communications Charlevoix MI Greg Noll Executive Vice President PMAK Topeka KS Jeff Thompson is a supply and risk management expert for Propane Resources He can be reached at 888 739 6732 or jeff@ propaneresources com Join the Young Gassers Were looking for new leadership and this is your chance to make an impact on the future of the industry Dont be afraid to assemble a team of people who are smarter and more talented than you The dividends will be growth in business and in your personal development Get engaged in your state associations and the committees on a national level Knowledge is power Have a voice 6 LPGas February 2019 LPGasmagazine com