Dixie Addition
I was born in New Orleans, Louisiana.
My father was working for Shell Oil and my mother had just received her master’s degree from Tulane University. She loved to cook and there is a 1959 Polaroid of her wearing a yellow apron with a crawfish print, feeding me shrimp gumbo before I could even walk.
So I suppose that makes me a little bit southern!
The Dixie Pipeline
The Dixie Pipeline Co. was formed in 1961. The pipeline, which is primarily dedicated to propane transportation, runs for 1,300 miles starting on the Gulf Coast and winding its way northeast through seven states and eight terminals before ending at Apex, North Carolina (ranked the #1 place to live by Money Magazine in 2015).
Along the way there is a large, natural gas liquids storage facility located in Hattiesburg, Mississippi. The salt-dome (underground) storage facility was built in 1978 and this “reservoir” holds approximately 126,000,000 gallons of natural gas liquids. It’s connected to the Dixie pipeline and can supplement pipeline propane supply heading east.
Southern Comfort
Ray Energy is now a shipper of propane supply on the Dixie Pipeline continuing the expansion of our midstream footprint and making new friends along the way. Our exceptional customer service and industry-leading expertise are several of the ingredients that go into our winning recipe.
To find out more information and become a satisfied Dixie customer, please contact Ryan DiGuisseppe or Leanne Mazoch.
What’s Happening with Propane Prices?
We have an expanding trade war with China which hurts propane export demand. We have above-average propane inventory levels.
Natural gas prices near $2.00 MMBtu are hovering just above their lowest level in three years, having tumbled from $19.11 MMBtu (September, 2005) to $1.75 MMBtu (February, 2016).
And crude oil prices in the mid-$50 range are much closer to the low price mark of $36.34 bbl. set in January, 2016, than the high price mark of $163.94 bbl. set in June, 2008.
So it’s hard to imagine propane prices moving much higher in the near term until we see a material change to the status quo.
Propane Price Chart
EIA Weekly Numbers
Total US propane inventories showed an increase of 3.2 mmbbls. for the week ending 8/9/19. That brings national inventory levels (excluding non-fuel use propylene) to 82.6 mmbbls., about 23.6 percent higher than last year.
PADD 2 (Midwest/Conway) inventories showed a gain of 0.2 mmbbls. They currently stand at 24.8 mmbbls., nearly 5.5 percent above last year’s level.
PADD 3 (Gulf Coast/Belvieu) inventories rose by 2.5 mmbbls. They currently stand at 47.7 mmbbls. (excluding non-fuel use propylene), roughly 40 percent higher than last year.
The Skinny
Ray Energy is committed to expanding our midstream propane footprint. Adding shipper status on the Dixie pipeline allows us to bring our industry expertise and exceptional level of customer service to many long-time southern friends (you know who you are!), while also developing wonderful, new customer relationships.
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