First winter without Cochin will pose test

September 23, 2014 By    

September DatapointsMore than 50,000 barrels per day of propane transportation capacity was lost with the Cochin Pipeline’s reversal this year.

According to ICF International, Cochin was the largest single source of propane supply into Minnesota (38 percent) and North Dakota (29 percent), and it was a significant source of supply into Indiana (17 percent) and Iowa (13 percent).

In addition to directly serving these states, Cochin’s presence reduced transportation congestion on other pipelines delivering propane into the Midwest. Cochin also provided direct access to the 5.2 million barrels of propane storage facilities near Fort Saskatchewan, Alberta, Canada. In Cochin’s absence, access to this storage capacity is limited to rail and truck transportation.

According to ICF, the loss of Cochin will not have a noticeable impact on the total supply of propane available to North America. Canadian supply that was transported to the Midwest on Cochin will continue to be available, and propane supply from Canada will continue to grow. Still, the loss of the pipeline will reduce the availability of propane supply into a region that’s already constrained.

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