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Technical Tips & Information

Propane Backup for Natural Gas

Prices and availability for natural gas as well as number 2 fuel oil remain uncertain over the coming months. The key is to have as many alternate fuel options as possible for your facility and also increase onsite storage to longer terms such as a 30 day or more supply.

Propane air mix systems take liquid propane, evaporate it to a gas, and then mix it with air to a ~ 1,030 BTU per cubic foot content to emulate natural gas. Some equipment such as boilers can also be configured to fire propane directly.

It takes 10.93 gallons of propane to equal 1 MBTU (one million BTUs). Current propane prices are in the $1.40 range per gallon which works out to $15.30 per MBTU. The key is to buy propane in the summer when costs and availability are not a problem.

Adding a propane air mix system to your facility can range from $100,000 to over $500,000 depending on energy needs of your plant, site considerations, and code requirements.

Some points to consider are as follows:

91% of propane production comes from natural gas wells and 9% from refineries. Propane supply can be dependent on the same issues which affect oil and gas production which makes on site storage capabilities at your location very important.
The largest practical size storage tanks are 30,000 gallons. A tank can hold about 85% of its gross storage rating so a 30,000 gallon tank can in fact store up to 25,000 gallons of propane.
Propane can be bought and stored in caverns with the closest being in SC. If you are considering this option, you must add for storage costs and also factor in interruptions to trucking to your site. Propane can also be stored in 30,000 gallon railway cars but demurrage charges charged on cars adds up very quickly.
Code requirements for locating and maintaining a facility are strict. As a general rule, consider a 100’ buffer around the storage tank site. Easements and other options can affect this number on your site.
Tanks can also be buried or protected by earth mounds which reduce set back requirements.
Tanks which are buried must be inspected every 10 years based on a review of a sample area of the tank. Tanks above ground must be inspected every 2 years and painted every 7 years.
Pressure on storage tanks depends on the temperature on the tanks. Underground tanks at 52/57 F will have a pressure of 70-90 psig. Tanks at 70 F will have a pressure of 125 psig and at 100 F 215 psig.
A tank farm can include up to 180,000 gallons of liquid storage in a group. Additional storage tank farms as a rule must be 75’ away from each other.
The demand for propane equipment is strong with deliveries now in the 12 week range.

If your current facility is tied to one fuel source such as natural gas, you would be wise to consider the economic impact of no natural gas being available for extended periods in cold weather. Having the option to switch fuels is both economically sound and also vital if you cannot operate without energy to produce your product.

It appears that the past few months have revealed 25+ years of inaction to recognize that energy production, use, and conservation may no longer be political footballs.

We can provide a full range of services including energy reviews to reduce consumption, high efficiency boilers, number 2 oil and propane systems, burner tune ups and reviews, and virtually any equipment used in your steam, fuel systems, compressed air, vacuum, and other plant utility systems.
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