A recent story in the Delaware Valley Journal reported on the high demand propane industry in Pennsylvania.
Propane, a derivative of natural gas, has many uses in Pennsylvania including home heat. Energy production in the Marcellus Shale has increased the supply for this product, which has provided a growing domestic and international supply.
Some have been expressing concerns about the domestic retail supply for propane, which has been unfounded.
Lesley Brown Garland, vice president of State Affairs at the National Propane Gas Association stated, “…there is more than enough product in the United States to satisfy our customer demand. There are, however, limits on the safe transportation of propane from supply points as well as limits on pipeline capacity.”
The Mariner East pipeline system is a critical project to increase the local supply. Without pipeline infrastructure, getting these products from the Marcellus Shale to local markets is challenging and less safe.
Amanda Gorgeiro, an Energy Transfer representative, provided the following in Maria Maraboti’s piece:
“An Energy Transfer representative told the Delaware Valley Journal that they have not experienced any supply issues. To prepare for future supply problems, they are currently completing construction of the Mariner East 2 and 2X pipelines.
“’[This] will allow us to transport more NGLs out of the Marcellus Shale producing region and deliver them to our Marcus Hook facility,’”
The company has also announced to be converting additional assets to keep domestic markets sufficiently supplied.
Industry insider, Tom Shepstone has also refuted points made by JD Buss in Maraboti’s piece. Buss alludes to rising costs, but data that Shepstone shared in a recent piece shows that prices have actually dropped 30% in the last 3 years.
There is no doubt that increased pipeline infrastructure capacity would produce greater supply, which is why Pennsylvania must double down to ensure these projects are completed.
Pennsylvania’s energy landscape is ever changing and has seen considerable development. The short and sweet is that that development has rewarded Pennsylvania businesses, consumers, and opened the state to countless opportunities.