Bloomington, Ill. (November 15, 2019) – With colder temperatures and the late harvest continuing across much of the Midwest, propane is in high demand. GROWMARK and the FS System are adjusting supply plans and deployment of assets to respond to the current propane infrastructure challenges.
“While there are historically high U.S. inventories of propane, the pipeline infrastructure is maxed out and cannot fully support extreme demand periods in the Midwest,” said Carol Kitchen, GROWMARK vice president of energy and logistics. “We share our customers frustrations and are doing everything we can to minimize service delays.”
Over the past five years, GROWMARK has made a significant investment in new rail transportation and storage facilities. The extra capacity of these assets has been helpful, but GROWMARK is also securing propane from additional supply points both inside and outside of the traditional territory. Extended travel times to source propane place a greater demand on logistics assets.
“While we can’t speak for other shippers, we currently have product volume committed from our suppliers and are doing what we can to work through or around the limitations of the propane infrastructure,” said Kitchen.
About GROWMARK, Inc:
GROWMARK is an agricultural cooperative with annual sales of $8.5 billion (FY 2018 data) providing agronomy, energy, facility planning, and logistics products and services, as well as grain marketing and risk management services throughout North America. Headquartered in Bloomington, Illinois, GROWMARK owns the FS trademark, which is used by affiliated member cooperatives. More information is available at www.growmark.com.