Propane Shortage Reported in the Midwest
Wednesday, October 30th, 2013
Due to extreme demand from a long harvest season, there are localized propane shortages.
CHS propane risk management manager Bryan Lewis says propane supplies are adequate nationally, but localized challenges are evident in Minnesota and the Dakotas.
The issue has been complicated by issues at the pipeline. "The pipeline that comes out of Edmonton, Alberta is in a reversal process right now. We're going to be losing it sometime after the season.
"It will be reversed and transporting a different product, so they're not able to push as much product as they have historically."
With the Midwest distribution system overloaded, trucks are waiting six-to-seven hours or longer at the terminal.
Suppliers are also forced to go outside the Midwest to secure propane. "A lot of them are having to run down to Kansas or Nebraska to bring product back up."
Governors in Minnesota, North Dakota, South Dakota and Iowa have issued hours-of-service exemptions to facilitate propane movement.
If the harvest continues to drag on, Lewis says the propane shortage could also be prolonged.