Energy Update
Jun 03, 2020
Fred Urch, VP of Energy
Upgrades to the Owatonna West LP plant have started this week. Last fall, when the facility was purchased, we were able to put together a short term plan to get the plant operational for the fall dryer season. The plant functioned as needed and proved to be a great asset during the dryer season last fall. The upgrades we are making to this facility will make it one of our most capable propane locations. When complete, there will be two transport offloading risers and two bobtail or transport loading risers. New pumps are being installed that will increase loading efficiency (10 to 15 minutes or less). We are looking forward to the benefits this plant will provide during the fall and winter seasons.
The energy markets continue to zig-zag their way upward based on news of reopening the economy. The price of diesel has come up nearly $.30 in the last 30 plus days. We anticipate that this pattern of upward movement will continue as the production and demand balance is worked out with more economic activity. Customers should keep an eye on the market as there may be some contracting opportunities. There is a traditional trend for prices of diesel and gas to work their way up over the summer months.
Upgrades to the Owatonna West LP plant have started this week. Last fall, when the facility was purchased, we were able to put together a short term plan to get the plant operational for the fall dryer season. The plant functioned as needed and proved to be a great asset during the dryer season last fall. The upgrades we are making to this facility will make it one of our most capable propane locations. When complete, there will be two transport offloading risers and two bobtail or transport loading risers. New pumps are being installed that will increase loading efficiency (10 to 15 minutes or less). We are looking forward to the benefits this plant will provide during the fall and winter seasons.
The energy markets continue to zig-zag their way upward based on news of reopening the economy. The price of diesel has come up nearly $.30 in the last 30 plus days. We anticipate that this pattern of upward movement will continue as the production and demand balance is worked out with more economic activity. Customers should keep an eye on the market as there may be some contracting opportunities. There is a traditional trend for prices of diesel and gas to work their way up over the summer months.