One Cochin, Four ONEOK Terminals Out of Propane Supply
HOUSTON (DTN) --- Four of ONEOK's propane terminals are closed until noon CT
today, while the East and West leg terminals of Enterprise Products Partners
LP's Mid-America Pipeline are all on propane allocation as of this morning,
according to industry sources.
While propane supply is not constrained in the U.S., pipelines are
struggling to move supply fast enough to satisfy Midwest client needs due to a
spike in propane demand to dry corn crops, which are being harvested late
during wet weather conditions.
All of ONEOK's propane terminals remain on withdrawal assignments, which
entails contacting each shipper and telling them how many loads are available
at each terminal, said Megan Washbourne, company spokeswoman.
Washbourne wouldn't say if any terminals had run out of product, but a
company memo sent out to clients shows that four of the pipeline's eight
terminals will be closed until noon CT today.
ONEOK's Clear Lake, Iowa City, Des Moines and Rockford terminals, all
located in Iowa, are closed, the memo states.
The line's Tampico, Ill., terminal has three loads available while ONEOK's
Plattsmouth, Neb., terminal has 52 loads available, the memo states.
"We're not seeing demand die," Washbourne said. "We'll continue on
withdrawal assignments until it does."
Both legs of the MAPL line were on allocation last Friday, but some
terminals have since fluctuated between regular dispensing methods and
allocation, a system where only clients who have build up credit throughout the
year can lift product, said Rick Rainey, spokesman for Enterprise.
A memo sent to Enterprise clients states that the Pine Bend, Minn., terminal
had 60 loads of propane available as of 8:45 AM CT today, and that the next
batch of about 83 loads is scheduled to arrive at that terminal on Monday
(11/23) at about 5 PM CT.
Rainey said the line's at terminals in Kearney, Mo.; Moberly, Mo.; Clay
Center, Kan.; and Greenwood, Neb., had been going on-and-off of allocation all
week, but are back on the allocation system as of this morning.
"The situation has been changing hourly," Rainey said.
Rainey said some of the Enterprise MAPL terminals have gone dry throughout
the week.
"That's what happens; once they pick up that last load, the terminal has to
be resupplied," he said. "It may take a few hours or a day because demand is so
high."
Four of the five Cochin terminals had product available as of 8:15 AM CT
today, with the New Hampton terminal in Iowa, currently dry and scheduled for a
shipment of 11,250 bbl over the next 24 hours, according to a memo sent out to
clients.
The line's Carrington, N.D., terminal had two loads available and will
receive 10,500 bbl; the Benson, Minn., terminal had 15 loads available and will
receive 25,000 bbl; the Mankato, Minn., terminal had nine loads available and
will receive 17,250 bbl; and the Milford, Ill., terminal had nine loads
available with 10,500 bbl expected to arrive within the next 24 hours, the memo
states.
Demand has been heavier in northern states due to concerns about frost,
Rainey said. Farmers who would receive propane from northern terminals tend to
want to get their crops in earlier, so demand has been more robust in those
areas. But, demand is still heavy everywhere, he said.
"It could shift from the northern section to the southern section on any
given day," he said. "This is an unusual event added onto regular seasonal
demand."
Telvent DTN's Meteorlogix's unit forecasts currently show that temperatures
will remain between two to 12 degrees above average in the Midwest for the next
10 days, limiting demand for heating homes and businesses.
"The extremely cold weather hasn't set in, so most of this propane is going
towards agricultural use," Rainey said. Colder temperatures would constrain
supply in the region further, he said.
T.L. Hamilton, 1.832.767.2622, tl.hamilton@dtn.com, www.telventdtn.com. (c)
2009 Telvent DTN. All rights reserved.
