PROPANE SUPPLIES SHORT, COST UP; REFINERY BLAST PARTIALLY BLAMED

Propane gas inventories are down and prices up.

The Missouri Propane Gas Association is concerned about a shortfall in the supply of propane this winter, said Wallace Willard, MPGA president. "Propane inventories are at the lowest levels since 1970," he said.

Local retailers are not at fault for the shortages, said Willard. "The northeast region of the country had a frigid winter last year and used more than the normal amount of fuel," said Willard.

But one of the biggest factors was a propane fuel refinery blast in Mexico in July.

"We usually receive about 30 percent of our propane from Mexico," said Willard. "This year we had to export propane to Mexico because of the facility's blowup."

Another factor is that propane is used in corn and tobacco drying processes, and a bumper corn crop resulted in the use of 20 percent more propane.

Propane inventories were down going into the 1996-97 heating season.

"In August we were down 9.6 million barrels from the five-year average," Willard said.

Inventories continue to decrease at the rate of almost a million barrels a week, said the Missouri Department of Natural Resources' Division of Energy.

Propane inventory shortages already have increased prices more than 65 percent over a year ago.

"We're still competitive with other fuel sources," said Willard. "The propane crisis will pass."

Current price of residential propane is about $1.30 a gallon, up from the average price of 70 cents at this time a year ago and up 18 percent over the past couple of weeks.

The Division of Energy calculates prices through a statistical sampling of Missouri propane gas dealers and information from the U.S. Department of Energy's Energy Information Administration's State Heating Oil and Propane program, which monitors prices in 10 Midwestern states.

Propane officials say the best approach to dealing with the shortage is to encourage the industry to take steps to forestall any serious problems.

MPGA and Missouri Propane Education Land Research Council Inc. officials encourage dealers to maintain storage and customers to turn down thermostats, monitor flames when cooking, avoid using propane-powered outdoor lights and reduce temperature settings on water heaters and dishwashers.

Although some terminals have been placed on allocations, a number of Southeast Missouri and Southern Illinois propane dealers say they have ample supplies.

"This could change tomorrow," said Angie Landewee, office manager at the Cape Girardeau office of Empire Gas, 2112 William. "Currently we're having no problems getting gas."

Landewee said the company, which serves customers in Missouri and Illinois, suggests that customers fill their tanks now and conserve by turning down thermostats.

Ferrellgas said its inventories are sound.

"That could change," said Roger Pierce, district manager of the Cape Girardeau Ferrellgas office at 2112 William. "We're OK now, but an extreme cold spell might create some problems."

Amerigas Propane Service, which serves Missouri and Illinois customers with offices in McClure, Ill., urges customers to conserve fuel.

Approximately 20 percent of Americans use propane in some form. More than 60 million people in the United States use about 15 billion gallons of propane annually in homes, businesses and industries for a variety of purposes that include heating, cooking and water heating.

Cher Stuewe-Portnoff, director of the DNR's Division of Energy, said that about 12 percent of Missouri households use propane.