New Jersey Declares State of Emergency Over Propane Supply

Core Viewpoint - New Jersey has declared a state of emergency due to a potential propane shortage caused by a service disruption at Energy Transfer's Marcus Hook Terminal in Pennsylvania, affecting home and commercial heating for approximately 186,000 residents in New Jersey [1][2]. Group 1: Emergency Declaration and Impact - Governor Phil Murphy's emergency order waives hours-of-service regulations for trucking heating fuels to address the supply chain disruption [1]. - The disruption at the Marcus Hook Terminal is due to an electrical fault that occurred on November 19, which has led to a force majeure declaration by Energy Transfer [2]. Group 2: Supply Chain and Distribution - Customers are currently on allocation, receiving only 70% of their propane loads, with increased wait times for trucks loading propane directly from the pipeline [3]. - Trucks are also sourcing propane from alternative distribution hubs, such as Phillips 66's Bayway refinery in Linden, New Jersey [3]. Group 3: Market Conditions and Pricing - Approximately 2.7% of New Jersey households and 5.2% of Pennsylvania households utilize propane for heating, with residential propane prices remaining stable since the incident, while wholesale prices have increased by 30 cents per gallon in New Jersey and 11 cents per gallon in Pennsylvania [5]. - The Pennsylvania Department of Transportation has also waived hours-of-service regulations for bulk propane transport in response to the disruption [5]. Group 4: Regulatory Actions and Future Outlook - The National Propane Gas Association is in discussions with the Federal Motor Carrier Safety Administration for a regional waiver due to the impact on the Mid-Atlantic and New England regions [6]. - The waivers in Pennsylvania and New Jersey are specifically related to the disruption at Marcus Hook and not indicative of an overall propane shortage [7].