The Many Benefits of Additional Bulk Propane Storage

by Richard Constant, Bergquist, Inc.

Lower prices and reliable supply are just the beginning

With summer coming into full swing, companies are beginning (or have already begun) to plan plant upgrades. With each passing winter, propane marketers try to learn from past issues or problems they may have had during their busy season. Other than general maintenance – which tends to take a backseat to everyday business in the colder months – the main topic commonly mentioned this time of year is additional propane storage or increasing current storage capacity. No one has ever come out of a cold busy winter and said, “Gee I wish we didn’t have such large storage capacity. ”

Most propane marketers talk about additional storage capacity after a particularly cold winter – or if there has been a shortage or a large spike in pricing. There are always added benefits to extra storage. It will give you the opportunity to purchase more propane in the off season when prices are generally lower. It will allow you to hold your contract price for gas in the event of a spike in cost. You will have more product on hand if there is a delay in delivery, like a snowstorm or ice storm that knocks out power to your customers for a few days. You can provide better customer service for your community if you keep supplying their needs during adversity.

When it comes to plant upgrades or facility storage, the two negative arguments you may hear are: Lack of space for additional storage and total costs involved. While lack of space is a problem that is hard to overcome, we witness more companies putting in remote or satellite plants just for the extra storage. This storage is typically further away than the main facility. Oftentimes, the new bulk storage is in a remote area strategically located close to a cluster of customers. It’s used more for convenience – as a location to not have to drive back to the office or main plant just to refill your truck to finish your already busy workday.

The cost issue can be looked at with optimism. Yes, bulk storage tanks are expensive. The equipment is expensive. However, it must be looked at as an investment in your company. Having extra storage makes sense.

Every manufacturer of LP equipment is making newer, better, and safer equipment for LP storage and transportation. If you are looking to increase your loading time, for instance, many newer pumps have the potential to load your truck up to 25 percent faster than an existing pump. If you have an LP-storage tank at a remote location and need to self-load your truck without power, truck manufacturers can build you a new truck with that in mind.

If you are just looking to increase your current onsite storage, there are new products on the market that make your everyday operations smoother. The adoption of tank monitoring technology has increased substantially over the last few years. You can remotely view tank volume to help direct a delivery to a location you might otherwise have had to drive out to and check inventory levels. There is the option of a Variable Frequency Drive, or phase converter, for your plant pump if you have issues getting power in a remote area. You can get relief valve manifolds that allow the changing of entire relief valves (or in some cases a relief valve cartridge) while gas remains in the tank. This helps to avoid the expense of burning down a tank, or re-pressurizing a tank into service.

Whether it’s storage at a rail terminal, storage at a propane marketer facility, or a tank on a high-volume dispenser, storage issues are basically the same. We all try make the best of what we have available to us. The limitations usually come down to tank size or lack of space to expand. This has always been an issue for most pro-pane storage facilities. Since the 2011 bulk-storage compliance upgrades, pro-pane marketers essentially fall under the same compliance and safety standards.

If you have concerns or are thinking about increasing your storage capacity, reach out to your local propane distributor or plant builder. They are the equipment specialists. Propane equipment distributors and plant builders are the people who know how to best use these products to attain desired efficiencies. They would be glad to spend the time to answer questions and make recommendations for an idea that would be beneficial to your company and your storage facility.

Richard Constant is the OEM Equipment Sales Director at Bergquist Inc. He can be reached at richard.constant@bergquistinc.com.

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