More than half a million barrels of propane are now headed to the Midwest and Northeast as a result of an extended FERC order. These shipments will significantly assist NPGA members in meeting the essential needs of homes, businesses, and farms across the Midwest and the Northeast.
This additional flow is a result of a Federal Energy Regulatory Commission (FERC) order issued yesterday that extends the period during which Enterprise TE Products Pipeline Company LLC (Enterprise) must prioritize propane shipments from seven to 14 days, ending now on February 21, 2014.
NPGA commends FERC for its swift action to recognize the current emergency circumstances and to shape a remedy under its statutory authorities to protect America’s energy consumers, who are facing more weeks of below-normal temperatures. NPGA values the opportunity to work with FERC to assure reliable, energy service to the millions of customers served by NPGA member companies.
During this unprecedented winter, pipelines play an even more important role in helping our industry supply customers with the propane they need. NPGA appreciates the response from Enterprise and their cooperation in quickly adjusting the batch schedule to bring additional barrels of propane to market in the heart of the winter heating season.
NPGA and its members look forward to continuing to work with Enterprise and FERC to ensure the safe, efficient, and economical delivery of propane to the nation’s consumers.
On February 6, 2014, National Propane Gas Association filed a request on behalf of its membership that FERC require Enterprise, under the Interstate Commerce Act, to prioritize shipments of propane on its petroleum products pipeline in order to bring additional supplies of propane to the Midwest and the Northeast. Both areas have experienced significant challenges in meeting propane demand as a result of a number of factors, including a record, wet, late grain harvest in the Midwest and a colder-than-normal winter.
The order issued on February 11, 2014, is an extension of a FERC order issued on Friday, February 7, requiring Enterprise “to temporarily provide priority treatment to propane shipments from Mont Belvieu, Texas, to the Midwest and Northeast regions suffering from severe cold weather.”