FERC OKs pipeline tariff changes to aid Midwest propane needs

The Federal Energy Regulatory Commission (FERC) accepted two oil pipeline tariff amendments aimed at helping to move propane to the Midwest.

Propane demand in the Midwest has soared in recent weeks, as farmers faced an extremely wet harvest combined with an early blast of winter-like weather that required propane use for space heating.

Both ONEOK North System (ONEOK) and Enterprise TE Products Pipeline Co. (Enterprise TE) said they had received requests from shippers for the changes after the start of the alternative dispute resolution (ADR) process initiated by FERC last month to alleviate propane pipeline constraints in Midwestern states.

FERC Chairman Neil Chatterjee announced the ADR process on Nov. 19, and the pertinent parties met on Nov. 25. Both companies filed their requests on Nov. 26, and FERC issued notices Nov. 27, with a shortened comment period that ended Dec. 4. FERC accepted the pipeline tariff changes on Dec. 5.