Maine fuel distributors report abundant supply of propane

The East Coast supply of propane was at an unprecedented low level on Aug. 31, according to a survey conducted by the U.S. Department of Energy. But Maine propane distributors have an abundant supply of the fuel, according to state and industry officials.

That should be a real comfort to propane users, who saw supplies dwindle to almost nothing during the bitter cold of last December.

Propane stocks on the East Coast are about 31 percent below the levels on Aug. 31, 1989, according to the Department of Energy. Gulf Coast supplies were off 17 percent, but stocks in the Midwest were slightly higher than last year. The rest of the country uses very little of the fuel.

“There are not a lot of stocks in the U.S.,” said John Flumerfelt, director of energy planning in the State Planning Office. “But at the present time, there doesn’t seem to be a major worldwide problem.”

The worldwide stock of propane is of particular interest in Maine, because 90 percent of the propane burned in the state comes from foreign nations, according to Flumerfelt.

The Sea Three marine terminal in Newington, N.H., is the largest supplier of propane to Maine distributors. Much of its fuel comes from Venezuela and Algeria.

“It all comes down to who you feel most comfortable with,” said Robert E. Cort, sales manager at Maine Energy in Hermon. “Sea Three has been very successful dealing in a very competitive marketplace.”

Propane also is delivered to Maine in tanker trucks from the Montreal area, and on rail cars from the South.

Michael McClain, vice president of Dead River Co., said the 1989 problem was caused by the combined effects of three unusual events: the coldest December on record; the delay of a major propane shipment to Sea Three, when an Algerian vessel was damaged at sea; and the freezing of the St. Lawrence Seaway when members of the Canadian Coast Guard went on strike, cutting off the supply of propane from Montreal.

McClain said he was confident Dead River would have enough propane to meet the demands of its Maine customers. The company increased its propane storage capability by 23 percent this year, he said.

“I don’t think people have to worry about it (an adequate propane supply),” said McClain. “But I don’t like the situation in prices.”

The cost of gasoline has jumped about 20 cents, to an average of $1.40 per gallon, since the Iraqi invasion of Kuwait. Heating oil prices are up about 40 cents, to $1.10 per gallon.

But the cost of propane has increased only 10 cents, to $1.37 per gallon for a typical residential customer.

Given the uncertainty about the future price of propane, Cort is recommending that his customers fill their tanks now.

“We’ve got plenty of propane, as much as we want,” said Cort. “We’re pulling in as much inventory as we’ve got storage for it. … But I’m recommending that customers fill their tanks, not because of something I know, but because of what I don’t know.”