Thanks to Mary Anne Kowalski for this comment on the Star Gazette article: I would like to comment on the statements that this storage will lower propane costs in the region. According to Crestwood: Accordingly, Finger Lakes would not expect to receive or deliver any propane or butane by truck if the storage facility were operational today. This impact reducing method in Finger Lakes commercial expectations around product movement, particularly as it relates to propane, results primarily from Enterprises reversal of part of the Enterprise TE Products Pipeline. Historically, this pipeline has delivered to New York the majority of the propane supply consumed by New York propane consumers annually. The eastern terminus of the pipeline is located in Selkirk, New York, and Enterprises Selkirk terminal is a primary point of supply for numerous propane dealers serving customers in central and eastern New York and neighboring Northeastern and Mid-Atlantic states. Although the market continues to evolve as the energy industry continues to find ways to more efficiently move LPG volumes from production centers to demand markets, this one change in the propane supply delivery chain has influenced how propane demand in the Northeast is expected to be served during the peak winter months. So NONE of the LPG is staying in the Finger Lakes or helping the region....it is going to central and eastern New York and neighboring Northeastern and Mid-Atlantic states. So this is wrong: Having LPG storage in the region will save money for propane users, OMara said. If you have a closer delivery point to serve the region, youre going to save on transportation cost. Just having that reserve helps the fluctuations in price. I believe very strongly in diversifying our energy portfolio and having things built in to avoid spiked prices. We certainly saw the spike in prices for LPG least year, he said. And this is wrong (except for Central and Eastern NY, maybe): In a Jan. 6 letter, Dean Norton, farm bureau president, notified Martens of the organizations support following a majority vote at its annual state meeting last month. The proposed facility aligns with the groups interests, he said. It will help lower propane costs for our members, help avoid temporary shortages from arising during the winter months . . ., he wrote. And this is wrong: Palmesano said he understands the arguments and that questions are being raised. Certainly, we know what we went through with the propane shortage from last year, he said. I know there are concerns being raised about truck traffic, although I think a lot of those trucks would be done more in the off-season, in the winter season, when the need for propane is greater, where they do more of their regional deliveries using trains and the pipeline, he said. Please see Crestwoods letter to DEC dec.ny.gov/docs/materials_minerals_pdf/20141202bsktodec.pdf
Posted on: Sun, 18 Jan 2015 18:48:47 +0000
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