Wednesday, April 16, 2014

Reason #45,690 Why I Love To Blog; Two 100-Tank-Car-Unit Trains Every Three Days With Propane/Butane From The Bakken To Washington State

This was posted yesterday, April 15, 2014:
RBN Energy: an update on the LPG export industry in Washington State.
On March 4th, Petrogas announced the purchase of the Ferndale, WA LPG terminal, the only functioning butane and propane export facility on the U.S. west coast.  Then last Thursday (April 10th) Sage Midstream announced a project to build another world scale LPG (liquefied petroleum gas) export terminal a couple of hundred miles south at the Port of Longview, WA.  These are big developments for the west coast LPG markets. Today we begin a blog series that examines the history of Ferndale, how it has been used in the past, and what these two announcements mean for the future of west coast propane and butane markets.
Rusty and I both have a warm spot in our heart for Ferndale, having managed the commercial activities out of that terminal more than two decades ago when we were with Texaco.  Ferndale is a 750MBbl storage, tank car, truck and waterborne import/export facility that sits near several Northwest area refineries, and is just a tank car ride away from some of the richest natural gas liquids (NGL) producing areas in North America.  For most of its existence, Ferndale has been the backwater of NGL markets, almost exclusively used for butane exports to Latin America and the Asia/Pacific markets.  But now NGL markets are changing dramatically due to the onslaught of new production from the shale revolution.  And exports have become the market of choice for NGL surpluses.  Up to now most of the action in exports has been along the Gulf Coast, and to a lesser extent in the Northeast out of the Marcus Hook terminal.   
That article was pretty much all about propane- and butane-by-rail to Washington State.

Today, Don sends me this TDN.com news story:
Port of Longview commissioners will hold two special meetings Wednesday about Haven Energy’s proposed propane and butane export terminal in Longview. The meetings are at 3 p.m. and 6 p.m.
The meetings, which will take place at the Cowlitz Expo Center, will allow the company to make a public presentation about the proposal and give citizens a chance to ask questions.
Last week, Haven announced it wants to build the $275 million terminal at the port’s vacant Berth 4. The project would create 2,000 construction jobs for the 21-months needed to build it, according to the company.
Haven officials say the completed terminal would create 110-125 full-time permanent jobs, including 26 to 35 direct company jobs and 22 direct railroad and maritime industry jobs — all at what the company described as above-average wages.
Liquid propane and butane would be shipped from North Dakota by rail car at an average of two 100-car-long trains every three days. Haven President Greg Bowles said the trains would use the existing rail corridor and not effect public roads. From the rail cars, liquid products would be transferred to two 100-foot-tall concrete storage tanks before eventually making its way to oceangoing ships bound for Hawaii, Mexico, the U.S. Pacific Coast and Asia.
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Global Warming Climate Change Extreme Weather
Call It What You Want: Another Winter Storm In Minnesota; Another 12 Inches Of Snow

The Weather Channel is reporting:
Issued by The National Weather Service Minneapolis, MN
Wed, Apr 16, 2014, 4:52 PM CDT .. WINTER STORM WARNING REMAINS IN EFFECT UNTIL 1 AM CDT THURSDAY
... A WINTER STORM WARNING REMAINS IN EFFECT UNTIL 1 AM CDT THURSDAY.
* TIMING... PERIODS OF SNOW... SOME HEAVY AT TIMES... WILL CONTINUE INTO TONIGHT. THE SNOW WILL TAPER OFF EARLY THURSDAY MORNING.
* TOTAL SNOW ACCUMULATION... 6 TO 10 INCHES. NARROW BANDS OF 12 TO 15 INCHES.
* OTHER IMPACTS... TRAVEL WILL BE HAZARDOUS THROUGH EARLY THURSDAY MORNING. THIS WILL BE A WET SNOW WHICH WILL BE DIFFICULT TO SHOVEL.