The Federal Energy Regulatory Commission (FERC) announced Nov. 19 that it will initiate a process with pipeline companies and shippers to explore actions to alleviate propane pipeline constraints in the Midwest.
“By bringing the pipelines and shippers to the table, we are building on these efforts and establishing a dialogue focused on exploring concrete solutions,” said FERC Chairman Neil Chatterjee.
The commission also said it is moving forward with a proposal from a Texas-based pipeline company to provide emergency transportation of propane to the Midwest for 30 days. Enterprise TE Products Pipeline Company LLC said the transportation service fulfills a request by a shipper to transport propane from Mont Belvieu, Texas, to Monee, Ill., to meet emergency demand for increased propane deliveries until Dec. 13. The company said the adjustment to accommodate propane service likely will create operational and scheduling issues and, therefore, cannot be sustained for a prolonged period of time.
FERC said this latest action comes after it received letters from Iowa Governor Kim Reynolds, members of Congress – including Iowa Republican Sens. Chuck Grassley and Joni Ernst and House Agriculture Committee Chairman Collin Peterson, D-Minn. – as well as various trade associations expressing their concerns regarding propane distribution and supply shortages.