Propane association executive provides insight on supply

Roger Leider, executive director of the Minnesota Propane Association, offered some insight into his state’s propane supply picture during the Propane Education & Research Council’s (PERC) April meeting in Atlanta.

“This winter we sold and delivered more gallons than in 2013-14 (the winter of regional propane supply and distribution challenges). From October through February, we were up 25 million gallons during that period. We did not have the same supply issues that we had in 2013-14. A lot of that is due to the infrastructure put in by many people in Minnesota. Rail infrastructure is huge, and it’s getting used year-round. People realize they have to utilize those resources on a year-round basis.

The ones that are successful had several supply points and supply sources and did an excellent job of handling it that way. It boils down to having multiple resources, multiple supply. The only other issue is going to be trucking – we’re short on transports and drivers. To encourage marketers into action, we used PERC studies from five, six years ago. We reiterated that you have to weather a five- or six-day lack of supply with your storage. Propane company supply is up; consumer site supply is up, whether a farm or home; and we reinforced the need for pre-buy, summer fills and taking care of things before we hit the wall. Minnesota marketers have done a fantastic job, as well as the suppliers in the state.”