Surging LPG Ship Rates Seen Breaking Record as U.S. Adds Exports

Costs to ship liquefied petroleum gas will exceed the 2008 record as the U.S. expands exports amid rising demand in Latin America and India, according to Exmar NV (EXM), the operator of 27 carriers.

Spot rates surged 47 percent this month to $70.86 a metric ton, according to the Baltic Exchange, the London-based publisher of shipping costs. The benchmark rate will set a new all-time high, Miguel de Potter, chief executive officer of Antwerp, Belgium-based Exmar, said by phone today.

Expanding natural-gas output in the U.S. is creating more LPG as a byproduct while shipments of the cooking and heating fuel to Latin America rise on winter demand, de Potter said. Congestion at Indian ports also is tying up ships for longer, leaving fewer available to compete for cargoes, he said. While rates rallied for one to three months around this time in the past three years, the current increase will probably last longer, he said.

“Some of my colleagues are more bullish this year because of the additional exports out of the U.S. and the additional imports into Latin America,” de Potter said. “It will definitely break the record.”

Rates reached $81.64 in July 2008, according to the exchange. The U.S. produced a record 29.8 trillion cubic feet of natural gas last year and exported 71.9 million barrels of LPG, according to Energy Department data. Shipments rose 15 percent to 5.9 million barrels in the year to February, the most recent data show.

Original Article Here.

R.H. Foster opens first propane fuel retail pump manufactured by CleanFUEL USA

ELLSWORTH, Maine (NEWS CENTER)-- Gas prices continue to keep the public's attention, but R.H. Foster in Ellsworth wants to offer residents an alternative form of energy. Monday the company unveiled its propane autogas retail pump, the first of its kind in Maine.

Executive Vice President Robert Tracy with R.H. Foster said, "What we have here is a public access, full use for anybody that's interested in auto gas fueling."

Regular, unleaded gasoline averages around $3.58 a gallon compared to propane topping out at $2.14.

CEO Roy Willis with the Propane Education Council said, "It's a positive step forward for the community and the country. Propane is growing in supply here in the United States. It is affordable. It is clean and it has multiple applications."

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Big State Support for Natural Gas, Propane and Other Alt-Fuel Vehicles

The State of Pennsylvania continued to show significant support for natural gas vehicles (NGVs), with the announcement that $6.7 million would be funneled toward incentives for heavy-duty NGVs.

Also, Gov. Tom Corbett announced new funding of $10 million for the state's Alternative Fuel Incentive Grant (AFIG) program, designed to help fleets purchase new alt-fuel vehicles or convert existing fleet assets.

The $6.7 million that was mobilized this week is a part of the state's $20 million Natural Gas Energy Development program, which provides incentives for compressed natural gas (CNG), liquefied natural gas (LNG) or bi-fuel vehicles that exceed 14,000 lbs. GVW. Awardees include companies such as Crossett Inc., which received $500,000 to convert 25 tractors to run on CNG, and Birkmire Trailer Co., which is also using $500,000 to convert 15 trucks to dual-fuel CNG/diesel technology and to buy six new CNG trucks.

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City of Springfield, Illinois Converts 24 Vehicles to Propane Autogas

City predicts annual fuel cost savings of more than $82,000 with propane
autogas.

GEORGETOWN, Texas - May 21, 2013

CleanFUEL USA has partnered with the City of Springfield, Ill., to convert 24 police patrol cars and pickup trucks to clean burning propane autogas.

These vehicles, which hit the road last week, will help the City save significantly on fuel costs in a short period of time, according to the City’s return on investment analysis.

“We estimate our fuel savings in the first year alone to be more than $82,000,” said Bill McCarty, director of budget and management for the City of Springfield. “Transitioning our fleet to propane autogas was an extremely easy decision to make because we are saving taxpayer dollars, improving the environment through cleaner auto emissions and supporting a domestically produced fuel source.”

A recently installed on-site refueling station featuring aCleanFUEL USA CFT Pro 2100 autogas dispenser will fuel the vehicles, used by the City’s public works department. The infrastructure for propane autogas refueling is less expensive than any other alternative fuel.

As part of the Natural Resources Defense Council’s (NRDC) Smarter Cities Project, Springfield, Illinois has been named among a list of 22 municipalities that are leading the way as “top energy performers” in green power, energy efficiency and conservation. When compared with gasoline, vehicles fueled by propane autogas emit 20 percent less nitrogen oxide, 60 percent less carbon monoxide and up to 25 percent less greenhouse gases.

“Municipalities around the country like the City of Springfield are doing their research, talking to other fleets, calculating the savings and realizing that propane autogas is a winner,” said Curtis Donaldson, founder and CEO ofCleanFUEL USA. “With minimum upfront costs and substantial fuel savings, CleanFUEL USA’s propane autogas fuel systems and dispensers are clear solutions for fleets looking to achieve both budget and sustainability goals.”

The project was funded in part by a grant from the U.S. Energy Department’s American Recovery and Reinvestment Act. Texas State Technical College serves as the lead grantee of the funds, which support the development of a national propane autogas refueling network, incentives to convert school buses and other fleet vehicles to alternative fuels, and training for green jobs. This initiative will help displace millions of gallons of petroleum annually.

Propane autogas is the leading alternative fuel in the United States and the third most commonly used vehicle fuel, following gasoline and diesel. Propane autogas, which costs an average of 30 to 40 percent less than gasoline and about 50 percent less than diesel, burns cleaner in engines, resulting in reduced maintenance costs. More than 90 percent of U.S. propane supplies are produced domestically.

According to McCarty, savings from these initial 24 vehicles will influence the City’s decision to add more vehicles fueled by propane autogas to its fleet, including police patrol cars.

About CleanFUEL USA:
CleanFUEL USA, the nation’s first developer of liquid propane fuel injection systems, is a leading manufacturer of propane autogas dispensers and refueling infrastructure. Headquartered in Georgetown, Texas with an engineering division in Wixom, Mich., CleanFUEL USA celebrates more than 20 years of innovation. Setting industry standards with a complete alternative fuel solution, CleanFUEL USA products offer unsurpassed economic and environmental advantages. Learn more at cleanfuelusa.com.

Alternative fuels' best friend: Buses

Public transportation is going green.

People who want to celebrate Earth Day week by commuting in a vehicle powered by a cleaner-burning fuel should hop on the bus.

More than a third of the nation's city transit buses are now powered by fuels other than diesel. That's up from fewer than 10% a decade ago, according to the American Public Transportation Association citing January 2011 data.

That compares with about 9 million passenger automobiles in the USA that ran on alternative fuels in 2010, according to the U.S. Energy Administration; that's less than 3% of the total.

Transit agencies across the nation, spurred by federal incentives for buying and using greener vehicles and by the potential savings of switching from diesel, are transitioning to buses that run on compressed natural gas, propane, diesel-electric hybrids and biodiesel. In total, there are more than 66,200 city buses in the country.

Read the full article here.

See you at the Western Propane Trade Show and Convention!

The 64th annual Western Propane Trade Show and Convention, the largest propane event west of the Mississippi River, will be held May 16-18 in Reno, Nevada. This year, for the first time, the Western Propane Convention welcomes the Pacific Propane Gas Association as a partner in the event, joining with the Arizona, Nevada, Rocky Mountain and Western Propane Gas Associations. Together, we are offering even more for the propane industry, including education sessions focusing on new technologies, safety for you and your customers, and making your businesses strong in a difficult economy.

The trade show, with more than 200 exhibiting companies, features the latest in propane products, vehicles, and services for the industry, giving attendees the opportunity for face-to-face discussions with a variety of company representatives. More than 1,100 propane industry members from around the United States and Canada will be there — so we hope to see you soon! The Arizona, Nevada, Pacific, Rocky Mountain and Western associations sponsor the convention.

More info here.

PROPANE AUTOGAS RIDING STRONG WITH S2G BOBTAIL, BI-FUEL CONVERSION IN SPRINGFIELD

The effort to build the propane autogas market continues with the showing in Atlanta of the Freightliner Custom Chassis S2G bobtail, and the launch of the Roush CleanTech Ford F-650 chassis cab at the 2013 Southeastern Convention & International Propane Expo presented by the National Propane Gas Association.

I’m catching up with two interesting videos available courtesy of CleanFuel USA, the Georgetown, Texas-based provider of turnkey fuel and refueling infrastructure solutions, propane-powered engine systems and conversions, and fleet management programs.

One video offers a test drive of the S2G with the driver noting the ride is quiet, it handles like a car or pickup, the acceleration is powerful and visibility is great, and the S2G is “a natural fit for folks that deliver propane.” (Those of you who object to seeing a competitor’s logo on a bobtail may want to turn the video off around the 1:40 mark.) Check out “S2G Ride & Drive, Work Truck Show, March 2013.”

Read more here.