NGL Supply Wholesale flows propane at new Michigan terminal

NGL Supply Wholesale, part of the liquids segment of NGL Energy Partners, continues to ramp up its propane supply offerings in Michigan since acquiring the Ambassador Pipeline from Lambda Energy Resources last year.

The Tulsa, Oklahoma-based company began flowing propane at the Wheeler terminal in central Michigan on Feb. 1, moving more than 1 million gallons in the first month of operation, reports Jeff Pinter, executive vice president of NGL liquids at NGL Energy Partners.

NGL Supply Wholesale’s Wheeler terminal in central Michigan. (Photo courtesy of NGL Energy Partners)

The terminal features 480,000 gallons of propane storage and two truck-loading bays, with flow rates averaging about 550 gallons per minute, according to the company. It’s fed by pipe from the north (Kalkaska) and south (Marysville).

NGL Supply Wholesale’s investments in the 225-mile natural gas liquids pipeline, which accommodates bidirectional flow, stem from Michigan’s high demand for propane and lack of good propane infrastructure, Pinter says.

“We knew the demand was there and, frankly, customers are looking for more reliable supply. We’re just trying to be part of that solution,” he adds.

Upgrades at the Kalkaska terminal, including new pumps at the truck and rail racks, were completed last fall. A connection to Marysville at the south end of the pipeline is the only remaining piece of the project. Work is underway and scheduled for completion later this year. The company says Kalkaska and Wheeler are proprietary terminals only accessed directly by its retail customers.

DCP, Lambda, LPG Ventures and the Michigan Propane Gas Association have served as key partners on NGL’s work in the state.

NGL Supply Wholesale delivers natural gas liquids, including propane and butane, sourced from 26 proprietary terminals, dedicated pipeline systems and refineries throughout the United States. NGL also operates more than 900 rail cars.

NGL Energy Partners is a midstream MLP that provides multiple services to producers and end users, including transportation, storage, blending and marketing of crude oil, natural gas liquids, refined products/renewables and water solutions.

Featured homepage photo courtesy of NGL Energy Partners