FERC approves emergency propane shipments to the Midwest
The Federal Energy Regulatory Commission announced today it has issued an order accepting a proposal by Enterprise TE Products Pipeline Co. LLC providing emergency transportation service of propane to the Midwest region for a 30-day period.
“The commission takes this issue seriously,” FERC Chairman Neil Chatterjee said. “We have been actively engaging with stakeholders, and with Capitol Hill and the states, and receiving regular updates from pipeline companies. By bringing the pipelines and shippers to the table, we are building on these efforts and establishing a dialogue focused on exploring concrete solutions.”
FERC said it will initiate an alternative dispute resolution (ADR) process with pipeline companies, shippers and their representatives to explore actions FERC and the industry can take to alleviate propane pipeline constraints in the Midwest.
The action is the result of conversations with and letters from Iowa Republican Gov. Kim Reynolds and several members of the House of Representatives and the U.S. Senate expressing their concerns regarding reports of propane distribution and supply difficulties in the Midwest, FERC said in a statement.
Senate Minority Whip Dick Durbin, D-Ill., said, “Today’s decision by FERC to deliver emergency shipments of propane to Monee, Ill., will hopefully assist our farmers who are struggling to dry wet crops. Farmers, livestock producers, rural businesses, and residents need help in this endlessly challenging year.”
Illinois is one of seven states now under an emergency declaration over a propane shortage, Durbin added.
Sen. Chuck Grassley, R-Iowa, said the ADR will help alleviate the shortage, which has been mostly due to infrastructure and distribution issues.
“I’ve heard from farmers, propane marketers, co-ops and manufacturers in Iowa about how the lack of access to propane is affecting operations and threatening their livelihoods. This announcement is a good first step, and I’m glad to see that FERC is taking this issue seriously. I’ll continue to work with my colleagues and coordinate with state officials to keep a close watch as this process moves forward,” Grassley said.