Will there be another propane shortage this winter?
The weather is (finally) warm, but it wasn’t long ago that Minnesota farmers, homeowners and businesses were dealing with a propane shortage during harvest season made worse by a long, frigid winter.
Staff from the Minnesota Corn Growers Association have been meeting with industry representatives and government officials who are working to develop strategies to prevent another shortage this winter.
Here is a Q&A to summarize of what MCGA has learned so far:
What’s the issue?
A propane shortage. Corn farmers harvesting a wet crop struggled to get access to propane to run grain dryers before selling their crop to market or storing it. Homeowners and businesses who relied on propane for heat also were squeezed.
Why should I care?
Because there’s a good chance it could happen again. If we get another wet fall and cold winter, a propane shortage like what we experienced last year could come with it.
What should I do?
Plan ahead. As best you can, try to address your propane needs for harvest season now. Yes, that’s easier said than done since we have no idea if this year’s crop will come in wet or dry, but the earlier you can fill your tanks or access additional storage, the better. Do the same if you rely on propane to heat your home, business or barn.
What caused the shortage?
Several things:
- The flow of Canadian propane to the Upper Midwest was halted for several weeks last winter when the Cochin pipeline shut down. Now the pipeline will be used to transport Canadian tar sands oil instead of propane. The Cochin pipeline supplied about 36 percent of Minnesota’s propane.
- Rail cars for propane shipments are needed to make up for the loss of the pipeline. Bad weather like what we experienced last winter slows down rail transportation. Some estimates have the number of rail cars necessary to meet Minnesota’s propane needs rising from 200 to 4,200 per year after the Cochin pipeline switch.
- We’re producing more propane in America than ever before, but exports to other countries are also at record levels. More than 20 percent of America’s propane production was shipped to countries in Latin America, Central America and Asia last year.
- The polar vortex brought long-term frigid temperatures to everyone in the United States, except the West Coast. That meant high and sustained demand for propane used to heat homes and businesses in addition to demand for propane to dry grain.
- A record corn crop came in wetter than the average and required more drying than normal, which happens once every five years or so.
What else is MCGA doing on this issue?
The Corn Growers have signed a letter asking the Minnesota Public Utilities Commission to temporarily vary its rules and allow several proposed large propane storage units to be built. This would help increase storage capacity and better meet demand from farmers, homeowners and businesses heading into the winter. Currently, the permit approval process for building a large storage tank can take up to a year.
Where can I go for more information?
Useful resources include:
