U.S. propane shortage deepens as cold snap reaches Midwest

Reuters ^ | Tue Jan 21, 2014 2:14pm EST | By Sabina Zawadzki

[topher]

(Reuters) - U.S. Midwestern states are scrambling to address a deepening shortage of the home-heating fuel propane just as another cold snap envelops the region, threatening to strain supplies that are already at historic lows.

Demand has been boosted by the combination of record freezing weather at the start of this year and a late, wet, record corn harvest last October and November, when large quantities of propane were used to dry out crops. Propane stocks have been drained and prices in the region are the highest since at least 1990.

[familyop]

Avoid connecting a 120-volt battery array. Get some golf cart batteries from a discount store (e.g., Sam’s Club). Connect them, 2 in series and the rest in parallel for 12 volts. There are many inverters that work from 12 volts to get your 120-volt AC output.

On PV solar modules, there’s at least one vendor that will ship 140-watt modules by UPS and low-cost, MPPT charge controllers to connect between the modules and batteries. A little study can go a long way helping to build a good, little PV solar system.

If you’re acquainted with basic electronics or electrical work, get a copy of the NEC. If not, get acquainted. Install the system completely independent and unconnected to the power grid, unless you plan to install a transfer switch.

If you don’t know anything about electrical work or code, buy one of the 45-watt Harbor Freight solar chargers (more expensive per watt but safer than trying to build a system without electronic/electrical experience). Be careful working with batteries and make sure that they’re vented at the top if enclosed for cold climate (cables through the bottom of the box, small vents at the top for hydrogen gassing).

Some of the online vendors have quite a bit of educational information for customers.

[thackney]

After a flush year with stocks up high, the combination of weather and concurrent harvest did certainly affect stock levels.

This Week In Petroleum, Propane
http://www.eia.gov/oog/info/twip/twip_propane.html

[Paladin2]

I’m set up for 12V DC. Inverters to get to 120-120V AC. AC Circuits separated and well grounded.

[Mycroft Holmes]

Propane song: so much promise, so little delivery. The graphics were especially disappointing.

[thackney]

Due to the differences in vapor pressure, it would be difficult (expensive) to share a pipeline with gasoline & propane. Diesel, Gasoline, Jet Fuel typical all move in the same pipelines in batches.

Natural Gas requires even more expense to combine in the same line with liquids. At every compressor/pump station you have to separate them then recombine. I only know of it being done for long offshore distances, even then it is uncommon.

[Marcella]

“But our current administration has stacked the deck against oil companies and such projects as Keystone...”

There is a reason the Keystone pipeline goes to Texas. Texas has the largest number of refineries in the US and more pipelines going north than any state. I used to own stock in the largest pipeline company in Texas and their material to me showed the huge number of pipelines snaking underground from our refineries to the north. The amount of refining other states, such as Louisiana, is minuscule compared to Texas. The country couldn't exist on those.

If I remember right, the oil reserve facilities for this country is also in Texas. I would have to look that up to be sure. I seem to remember when oil prices were very high, I read the govn. was considering taking some of their oil reserve from Texas. Since I didn't know it was in Texas, it made an impression on me. If I'm wrong about that, I apologize before someone hits me on the head about that fact.

[thackney]

From what I understand, propane is made as a byproduct of gasoline

Very little propane comes from oil refineries producing gasoline, diesel and the like.

The vast majority of the propane supply comes from natural gas liquids, along with ethane, butane, etc.

[Jack Hydrazine]

Hank Hill sings about propane.
http://www.youtube.com/watch?v=comGwbIAH38

[topher]

Three Republican Governors have declared states-of-emergency over this:

Bobby Jindal (R-Louisiana)

John Kasich (R-Ohio)

Bill Haslam (R-Tennessee)

I don't know if this is just politics or what, but all three have declared a state of emergency over the propane situation...

[grania]

create a shortage

I don't think it's a created shortage. The cold has been brutal with few breaks and weather issues with supply. I don't doubt that the suppliers are taking advantage of the situation.

[familyop]

Good work. Getting educated on generators and fuels was also interesting for me (extreme cold here).

[thackney]

If I remember right, the oil reserve facilities for this country is also in Texas.

Part in Texas, part in Louisiana.

[topher]

Could some other product (gasoline, diesel) be transported across country and then propane refined from it.

It would probably be expensive, but it might help in the case of a shortage.

Some folks have only a weeks supply of propane in some of the bitterly cold areas, so something should be done...

[thackney]

Stocks are far below normal. If the weather stays colder than normal for the rest of winter, the prices are going to get pretty high by March.

[topher]

Would it be best to transport by barges as LNG up the Mississippi to get to St Louis, Chicago, Ohio River destinations, or is rail/truck the best way.

Seems like barges on the Mississippi might be a way to get LNG to sites North, and then refine to propane (or just send propane North as a liquified product).

[IMR 4350]

About the only way to store enough to have an affect would be a salt cavern.

Drilling a salt cavern for a “just in case” emergency is kind of expensive and you need a salt dome which not every area has.

I’m just guessing but I would say a lot has to do with people not filling their tanks because they can’t afford to but only buying a couple of hundred gallons at a time which depletes the above ground storage in their area.

[Eric in the Ozarks]

I paid $2.50/gallon for a delivery yesterday to our rental cabin.

[Minutemen]

4 months ago: "We have so much propane.... that we don't know what to do with it."

I smell a rat.

[thackney]

Could some other product (gasoline, diesel) be transported across country and then propane refined from it.

Not without building special reactors that would take a few years. And it would be at least 4~40 times the price. You get some byproduct propane from the crude oil making the gasoline & diesel. Taking those finished products to crack them into propane would be very expensive.

The vast majority of our propane supply is propane already existing in the natural gas supply. This is not propane converted from natural gas. It is propane separated out (as if a filter) from the natural gas which is mostly methane.

It is not done with a filter, but rather with pressure and temperature changes that cause liquid droplets to coalesces out of the gas. But if you don't understand that process, it is close enough to think of it as a filter. Molecules are not being changed, just separated.

[thackney]

Would it be best to transport by barges as LNG

LNG is methane. It does not contain any propane.

The terms can be confusing, LNG is liquid natural gas. Methane from natural gas supercooled to -260°F.

Natural Gas Liquids are different molecules, ethane, propane, butane, etc. They are liquids are far warmer temperatures.