Page 29 - Oil and Energy-February 2013

February 2013 • 29
Propane
NPGA APPLAUDS CONGRESS FOR
SUPPORTING ALTERNATIVE FUELS
Several key alternative energy provi-
sions in the “fiscal cliff” bill directly benefit
the propane industry and its customers.
Richard Roldan, the National Propane Gas
Association’s (NPGA) President and CEO,
congratulated Congress for recognizing the
important role that alternative fuels, such
as propane, play in the nation’s energy and
employment objectives.
“The alternative fuel tax provisions are
uniquely important, not just to the propane
industry, but for every American because
they help us achieve our energy security
goals,” Roldan said. According to a recent
independent study, virtually all of the
propane consumed in the United States is
produced from North American resources.
The Fiscal Cliff legislation extended the
alternative fuel tax credit and the alternative
fuel infrastructure tax credit through 2013
and made them retroactive for taxable year
2012. The fuel credit amounts to 50 cents
per gallon of propane and includes propane
used in forklifts. The infrastructure credit
is for 30 percent of the fueling equipment’s
cost, up to $30,000.
Noting the specific benefit to the growing
propane autogas sector, Roldan said, “The
extension of the alternative fuel tax credit
and the refueling infrastructure tax credit
will help get more propane autogas vehicles
on the road and encourage fleet managers
to strongly consider alternative fuel options
beforemaking a decision.” The cost to convert
a vehicle to propane autogas is substantially
lower than other alternative fuels, making it
an ideal option for many fleets.
Extending the alternative fuel excise
tax credit and the alternative fuel vehicle
refueling property credit gives all alterna-
tive fuels, like propane, more economic
certainty to spur greater investments in the
future, according to NPGA.
THOMPSONGAS ACQUIRES
THREE PROPANE COMPANIES
ThompsonGas, of Hagerstown, Md.,
recently announced the acquisition of
three propane marketing companies in
two southern states, making it the 16th-
largest retail propane company in the
United States. A ThompsonGas subsidiary,
ThompsonGas-Smokies LLC, purchased
Drivers Energy of Dawson, Ga., the Quality/
Ideal Gas group in Griffin, Ga., and Tarheel
Oil and Propane in NorthWilkesboro, N.C.,
a company news release said.
“We are continuing to greatly expand
our presence in the Southeast and the whole
East Coast of the United States,” President
J. Randall Thompson said in the release.
The acquisitions increase ThompsonGas’s
capacity by about 7 million gallons and
will increase annual sales revenue by $26
million, the release said.
WILSONS PROMOTES ALLIANCE AUTOGAS
IN FOUR CANADIAN PROVINCES
Alliance AutoGas has extended its
vehicle fueling and conversion network
with the addition of the latest associate,
Wilsons Fuel Company Ltd., of Truro,
Nova Scotia. The entire Alliance program
will now be available to Atlantic Canada,
consisting of Nova Scotia, New Brunswick,
Prince Edward Island, and Newfoundland
& Labrador through Wilsons.
In a statement Gary Highfield, General
Manager of Wilsons, said, “We joined
Alliance AutoGas because it is the world’s
most reliable program to help fleets switch
to autogas. Autogas is the most viable fuel
on the market for fleets because it’s clean,
it costs less than gasoline and installing
autogas fueling stations is not expensive.
As an Alliance partner, we’re now able to
help fleets throughout Atlantic Canada start
saving on fuel costs right away by running
vehicles on autogas.”
Stuart Weidie, President of Alliance
AutoGas and founder of Autogas America,
said, “The addition of Canadian partners
like Wilsons plays a key role in the con-
tinuing international expansion of the
Alliance AutoGas network. It only makes
sense that such a well-established company,
which generations of customers have come
to know and trust, now provides local fleets
with the most affordable, dependable trans-
portation fuel on the market.”
In other news, Crystal Flash Energy,
of Grand Rapids, Mich., has also joined
Alliance Autogas. Crystal Flash distributes
propane to some 28,000 homeowners and
farmers in Michigan. The company will offer
vehicle conversions, install autogas fuel sta-
tions at their customers’ locations, and offer
safety and operational training, and ongoing
technical support to commercial customers.
FERRELLGAS EXPANDS INTO CONNECTICUT
Ferrellgas Partners LP recently acquired
Connecticut-based IGS Propane, the pro-
pane division of Industrial Gas & Supply.
Terms of the transaction were not disclosed.
IGS Propane is Ferrellgas’ third acquisition
in its fiscal year that began Aug. 1. IGS
also represents Ferrellgas’ first acquisition
in the state of Connecticut. Earlier this
year, Ferrellgas acquired Flores Gas of El
Paso, Texas and Capitol City Propane of
Sacramento, Calif.
RAIL BLOCKADE DELAYS
PROPANE SHIPMENTS
A two-week blockade of a Canadian
National Railway Co. by a Native American
organization in December and January
disrupted rail shipments of propane. The
barrier on the spur line, over which an
average of 450 Canadian National rail cars
pass each day, began on Dec. 21, 2012.
“The blockade is impacting propane sup-
plies to points east in Ontario into Quebec
and as far away as Atlantic Canada,” Jim
Facette, chief executive officer in Ottawa
for the Canadian Propane Association, a
trade group, told a Canadian news outlet.
The disruption forced the shutdown of the
Pembina Pipeline Corp. propane terminal
in Sarnia, Ontario, he said.
The blockade was initially organized
by the Aamjiwnaang First Nation to bring
attention to another First Nations’ attempt to
meet with Canadian Prime Minister Stephen
Harper, said Ron Plain, a spokesman for the
Aamjiwnaang.