NPGA Bobtail

Are You Ready for Peak Demand? There’s Still Time to Prepare!

Peak demand is beginning in many parts of the country, and most experts are predicting logistical challenges at different points in the propane supply chain. There’s still time for you to do a few things to make sure you’re ready for what’s to come, and here are some suggestions from NPGA’s Propane Supply and Logistics Committee and Propane Producers and Wholesalers Section.

Prepare With Credit Lines

  • Develop plans with your suppliers so you can stay within your credit line during the peak winter months. Is it enough to support your peak winter volume needs?
  • Consider paying via electronic funds transfer (EFT) or wire if you aren’t already.  Keeping account current will be key to managing your credit line.

Think About Supply Security

  • Consider contracting a portion of your winter supply needs at the closest off-hub storage site.  Trucking capacity will be at a premium. The closer you can source your gas, the better.
  • With the backwardation in the market (the winter months are cheaper than the current months), it doesn’t incentivize suppliers to store propane.  Spot gas could be sparse and expensive.

Line Up Your Transportation

  • Discuss your anticipated winter demand with your transportation partners so you are prepared. Limited trucks and drivers could lead to delayed deliveries, so having early conversations is essential. Keeping your tanks full will offer a buffer if there are delays.

Use Resources from NPGA and PERC

Prepare With Federal Resources

  • The U.S. Department of Homeland Security and Federal Emergency Management Administration offers, which includes resources to help businesses plan for emergencies.