Wholesale Propane Logistics

We have a favorable market position as one of the largest wholesale propane suppliers in the northeast U.S.  Our business model leverages the strong logistics capabilities of the DCP Midstream enterprise.

Through our strategically located terminals and numerous supply contracts, we have access to propane sourced from the Texas Gulf Coast, Canada and overseas.  Our assets include six owned rail terminals, one owned pipeline terminal, one leased marine terminal and the use of several open access pipeline terminals.  Our terminals provide us with aggregate storage capacity of 486 MBbls.

Our supply diversity affords us maximum flexibility.  This provides a competitive advantage, making us a preferred supplier to our retail distribution customers throughout the year.  The breadth of our propane supply options fulfills our base business obligations and allows us to capture upside opportunities during favorable market conditions.

The majority of our earnings from this segment are generated during the winter heating season in the fourth quarter and first quarter.  The earnings are supported by contracts structured to tie the purchase and sales price to the same index, locking in a fee-like margin and reducing our commodity exposure. 

We intend to build on the success of this business model and are actively reviewing opportunities to expand into new markets.