What’s up with Propane?

February 28th, 2018

Propane is part of the liquefied petroleum gas family.

 

Today’s Post is by Eli Razov, Account Manager at SafeSourcing Inc.

At SafeSourcing, we help our clients save money on a wide variety of categories, ranging from sugar to fuel hauling.   There isn’t much we haven’t sourced. One category we source regularly is Propane Tank Exchange. This has consistently proven to be a successful event and we are offering an opportunity for you to become involved. But first let’s learn a little about propane.

Propane is part of the liquefied petroleum gas family and is a gas under normal atmospheric pressure and temperature. Applying more pressure and lowering temperature, will cause that gas to turn to a liquid. Liquid propane is stored in pressurized tanks ranging in many sizes from the little tanks many of us use in our backyard grills, to giant industrial tanks. Propane is two hundred and seventy times more compact in liquid state than when it comes in its gas form. Much like natural gas, propane is odorless and has odorants added to serve as a warning. More than half of the propane used in the U.S. comes from raw natural gas. Raw natural gas contains many components, five percent of which is propane. Propane is processed out of other gasses at natural gas processing refineries. From here, underground pipelines are used to transport propane to distribution terminals. These distribution terminals are operated by many different propane companies. Here these companies “bottle’ the gas and it transported for use.

Propane has many uses.   Some applications include farms, businesses and industry. Uses range from heating and cooking, to brooding chickens, and small machinery operation. The U.S is the single largest consumer of propane in the world. Supplying one percent of our energy, nationwide it falls seventh behind hydroelectric power as an important source of energy. The transportation world makes up about six percent of the total propane usage. Cab companies, to school districts, use propane instead of gasoline. Retail stores across the country use it in many ways, primarily as a resale product for consumer use often for back yard grills.

So what does this mean to you? Many of our retail clients currently have a Propane Exchange offering at their stores. What many don’t realize at first is that there are numerous vendors in every region competing with the larger, national vendors and that this is a very competitive category when sourced using e-Procurement. With the use of SafeSourcing’s services, many of our clients have saved significantly. The last client who sourced this category with SafeSourcing saved over fourteen percent. SafeCollaborative™ is a new way for many companies to pool their procurement needs to aggregate larger savings with higher purchasing volumes. We will be offering a Propane Exchange SafeCollaborative™ RFQ Event in Q1of 2018 which is open for any company that might want to join. If you have any questions or are interested in participating please contact us at 888-261-9070.

For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact a SafeSourcing Representative we have an entire team waiting to assist you today

Sources………………………………………………………….

  1. http://www.lpgasmagazine.com/defining-the-state-future-of-the-propane-industry/
  2. http://www.indexmundi.com/commodities/?commodity=propane&months=240

 

 

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