MAPL

Corn drying in the Midwest is finally wrapping up, but farmers and grain elevators are still short of propane supplies even after emergency orders were imposed by several Midwestern governors. The shortage has contributed to a spike in propane prices and the Conway, KS market jumped above Mont Belvieu last week for the first time since February 2011.  But, there is more to the story.   The upper Midwest is enjoying the largest bumper crop of corn in the record books, and due to recent weather it is “wet” corn needing more drying, thus more propane.  With the U.S. “bumper crop” of propane from processing shale gas flooding the market, you might wonder why there is a problem.  Clearly the answer is logistics – having the barrels at the right place at the right time.  And that’s the reason for more concern when we get to next year.  Because one of the primary propane supply conduits to the Midwest – Cochin pipeline - goes away in early 2014.  Today we start a series to look at what’s going on with Midwest propane and how that market is likely to change when Cochin is reversed and turned into a diluent pipeline.

This week when nominations come to mind your thoughts naturally go to the political candidates in general, and the Tampa convention in particular.  But don't forget about that other kind of nomination - the most important step in the scheduling of NGLs and other hydrocarbon transportation.  Today we will continue our blog series on the Art of NGL Distribution by examining exactly how the nomination step takes place.  We’ll continue the scenario covered last week in Movin’ Down the Line – Conway Propane to Janesville, WI on MAPL.  That’s a nomination from Kansas, so we thought a politically themed title would be appropriate.

It’s still August, but there already is crispness in the Wisconsin mornings.  And to a propaner, that’s a signal that the heating season is on its way.  It is time to get those supplies lined out, and to make sure that customers are ready for the winter.  But Wisconsin is a long way from the centers of propane supply.  How does the propane get there?  How do the Distribution experts make sure the right volumes are in the right place at the right time?   In today’s blog we’ll continue our exploration of the Art of NGL Distribution by digging into the mechanics of moving supply on the Enterprise Mid-America Pipeline (“MAPL”) system from the Conway, KS hub to the Wisconsin market.  Along the way we’ll learn how propane is scheduled on a pipeline system, how a NGL pipeline tariff works, and why the word “allocation” sends shivers down the spine of an NGL shipper.