WINTER PREPARATION

Questions propane marketers should ask themselves regarding the upcoming home heating season:

  1. Do I employ diversification with multiple suppliers and supply points and originations?
  2. Do I contract for all my anticipated supply needs or do I plan on accessing the spot market to fulfill my delivery commitments? If I use the spot market for winter needs, do I have firm commitments from suppliers?

Questions propane marketers should discuss with their propane suppliers:

  1. here is my propane supply produced, and where does my propane supplier store it before delivery to my business?
  2. How long does this propane supply take to be delivered from the production source to my business? What transportation modes are used?
  3. Does my supplier have enough propane supply from these production sources (see No. 1) to meet my supply needs in a colder-than-normal winter?
  4. Does my propane supplier’s terminal or storage facility have the capacity to meet the winter propane supply needs and delivery rates for my business and the other propane marketers it serves?
  5. Do I have a plan to procure incremental or alternative propane supply in case of increased demand or supply interruption? (Repeat questions 1-4 for this incremental supply.)
  6. How does this incremental supply plan (No. 5) affect truck transport to my business? Is trucking capacity available to meet those needs? If not, how will I remedy?
  7. What can my business do to mitigate peak winter supply needs with additional propane storage or early customer fill programs?
  8. What tools can my propane supplier offer to insulate my business from propane price volatility?