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Chorus Logistics Understands Propane

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The U.S. is among the highest producer and exporter of propane gas around the world. Recent growth in oil and natural gas processing from U.S. shale gas has increased the export capacity investment in the Gulf Coast region. This has allowed the U.S. to become a net propane exporter to the global marketplace.

By all indications, the market for Propane seems resistant to the current market conditions, the oil downturn, and even global pandemics. Major factors driving the market are the increasing demand from various end-user industries, such as petrochemical, construction, and industrial.

If you transport Propane, how can you participate and take advantage of these market trends.  Imagine having a system that inventories every tank, and estimates the volumes based on historical consumption.

Imagine a system that guides your drivers from “Tank to Tank” in an optimized route, requiring the driver to only enter the volumes added to each tank; while the mobile app knows the customer, and all the billing information without driver input, and communicates that information to the cloud in real time.

Imagine a cloud based, dispatch management system that does all the invoicing automatically, including tank lease fees, commodity prices and all sales taxes. It includes payroll, keeps maintenance information on each truck, and keeps maintains and provides alerts for required licenses and certifications.

 

What is Propane?

Propane is a gas found mixed in natural gas and petroleum deposits, and it’s a byproduct of natural gas processing and petroleum refining. It is colorless, non-toxic, and virtually odorless. Known as liquified petroleum gas (LPG), propane is a gas normally compressed and stored as a liquid.

 

How Propane is Used

Propane is a versatile and clean-burning fuel. The propane gas market can be segmented into residential, commercial, agricultural, industrial, and transportation.

Residential and Commercial

The second-largest consumer of propane in the U.S. is residential and commercial sectors. It is used to meet some of their energy needs such as air conditioning, heating, cooking, fueling fireplaces, and various appliances. Propane dealers deliver propane to residences in trucks.
Commercial establishments, such as schools, hotels, hospitals, and restaurants also use propane for cooling and heating air, cooking, and lighting. Virtually anything in a house, building, or restaurant that runs on electricity can also run on propane. The cost of electricity is more than twice the cost of propane.

Agricultural

Most of America’s farms use propane to meet their energy needs. Farmers use propane to dry crops, ripen fruit, refrigerate foods, and heat water, barns, chicken houses, and nurseries. Propane is also used to operate farm equipment and technologies, control pests, and power irrigation pumps.

Industrial

Propane usage in the industrial sector includes fleet vehicles and propane-driven forklifts. Metalworkers use propane tanks to fuel cutting torches and various equipment. Other industries use propane for soldering, vulcanizing, and other processes that require a ready heat source.
In the chemical industry, propane is a valuable feedstock. Almost half of the propane used today is as a raw material for making pharmaceuticals, plastic bags, rubber, nylon, and other products.

Transportation

Propane has been used as transportation fuel instead of gasoline for more than half a century. It’s an ideal engine fuel because it burns cleaner than gasoline. It leaves no deposits that cause premature wearing of valves, pistons, and spark plugs, so the engine stays clean. Less maintenance is needed, and engine life is extended. Since propane is all fuel, it doesn’t require the additives that are usually blended into gasoline.

 

Transporting Propane

How does propane get from oil refineries and natural gas processing plants to the consumer? First, propane moves through underground pipelines to distribution terminals across the country. There are roughly 70,000 miles of pipeline in the U.S. that move propane to bulk storage and distribution terminals. Propane is then transported by transport trucks, railroad tank cars, tanker ships, and barges to bulk plants. Two types of trucks are used for propane transportation: a highway transport which carries 7,000 – 12,000 gallons and a smaller bulk delivery truck known as a “bobtail” which transports 1,000 – 5,000 gallons. All propane is transported under pressure in its more compact liquid form.

 

The Chorus Logistics Difference

We are experienced with NGL and LPG, and our Propane Customers are saving 10x what they spend on our software!  Since propane has proven itself to be resistant to global pandemics, and the oil turndown, our customers are growing their business during this unprecedented time.

Now more than ever, trucking companies must be diversified in their commodities transport and be able to track and account for all commodity movements. With the volatility of the oil and gas industry, companies must determine how they can do more with less to maximize the return on every asset and employee. Lost time means lost money. Our unique cloud-based suite of transportation management products will allow you to increase efficiency and reduce costs.

The Chorus Logistics solutions of dispatch management will automate, optimize, and improve the performance of your LPG operations. It’s imperative during this time to have digital solutions that not only support your business operations remotely but will also grow your business. Contact us today to learn more about our customized systems.

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