Mid-year 2024 propane industry observations

The nation’s largest propane retailer remains under current ownership after a comprehensive review of its LPG business as it charts a restructured path forward.

A truck manufacturer’s plans to bring a dedicated, propane-fueled bobtail to the U.S. market becomes public, while questions surround the future of another high-profile engine project.

A spark-ignited forklift ban in California threatens a traditionally strong propane market.

The industry realizes new initiatives to attract and retain the next generation of industry professionals as it continues to battle anti-gas regulations, legislation and sentiment.

A lot has happened over the past six months, and a lot of good has taken place. Here are some of our biggest observations about the industry from the first half of this year.

Forklift ban

In late June, the California Air Resources Board passed a new regulation that will phase out the operation of large spark-ignited forklifts in California and spur the use of what it calls “zero-emissions alternatives.”

Under the new rule, manufacturers cannot produce or sell, for use in California, Class IV and Class V forklifts of this type – categories that largely operate on propane, gasoline and natural gas – beginning in 2026.

You can also find a column representing the industry’s perspective from Colin Sueyres, president and CEO of the Western Propane Gas Association. Read it now. 

It was probably no coincidence that Sueyres tapped Kelly Senecal, co-founder and owner of Convergent Science, as a featured speaker at May’s Western Propane Trade Show & Convention in Reno, Nevada. Senecal made the “case for combustion,” a message he shares with audiences around the world. He compares energy choice to a financial portfolio – diversification is the smart approach and the best defense against risk.

Propane bobtail

Nexio plans to offer a propane autogas truck line that includes single rear axle, tandem rear axle and tractor configurations in Class 7 and 8. (Photo courtesy of Nexio)

In Reno, the industry heard for the first time about Nexio’s plans to bring a dedicated, propane-fueled bobtail to U.S. retailers.

You can’t mention the Nexio story, though, without wondering about the Cummins propane engine project, which we’ve covered closely for the past four years. The manufacturer was supposed to deliver the 6.7-liter engine this year – for use in medium-duty trucks and other applications – but it’s at least two years from achieving that goal. In June, a non-propane industry trade publication even reported that Cummins is shelving the propane offering altogether.

Asked about that report, Tucker Perkins, president and CEO of the Propane Education & Research Council, which has helped to fund the project, says the sides remain under contract as they eye an August meeting.

“I have no plans for now to stop moving forward with Cummins,” he shares in an email. “As long as we are under contract, we are working to show them the value of producing the engine.”

Industry firsts

Also this year, the industry formed a Young Professionals Council within the National Propane Gas Association (NPGA), and it launched at April’s Southeastern Convention & International Propane Expo in Charlotte.

Stephanie Hennen of Lakes Gas has led the charge to form such a committee that will help acclimate new employees to NPGA and the industry – not to mention serve as a recruiting tool for prospective employees.

Charlotte hosted the Propane Expo for the first time, drawing just over 3,200 total attendees – a dip from the previous two years in Nashville.

While in Charlotte, we learned about a partnership between Manchester Tank and Ditech Testing that culminated in Manchester’s acquisition of the Canadian-based tank refurbisher.

We weren’t exactly sure if AmeriGas was headed toward its own partnership or sale this year after parent company UGI Corp. announced in 2023 a review of its LPG business. In May, we learned UGI was staying the course with AmeriGas, focused on maximizing shareholder value. But it’s not discounting any new, future opportunities.