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

• NPGA’s Member Dashboard includes the ABCs of Supply Planning, an updated white paper on supply and logistics planning, as well as updated supply reports from IHS Markit.
• Access NPGA’s Propane Logistics Analysis Network (PLAN) on your desktop or through the NPGAction app. Submit wait times at terminals and help inform the industry!
• PERC provides information to customers on winter preparation as well as a collection of resources to communicate with consumers, including radio and print ads and other collateral materials.