Governor Declares Emergency Amid Propane Shortage Fears

New Jersey Governor Phil Murphy declared a state of emergency on Friday. The order addresses a severe propane supply disruption. This affects home and commercial heating across the region.

The crisis stems from a service outage at a major Pennsylvania terminal. Freezing temperatures are escalating concerns for over 186,000 residents who rely on propane for heat.

Electrical Fault at Key Plant Triggers Supply Crunch

The disruption originated at Energy Transfer’s Marcus Hook Terminal. According to reports from Bloomberg, an electrical fault on November 19 disabled the facility’s propane loading systems. This forced the company to declare force majeure.

The terminal cannot pump propane from its underground storage caverns. Trucks are now being loaded directly from the pipeline. This process is causing significantly longer wait times for deliveries.

Customers are currently receiving only 70% of their typical orders. This allocation system is managed to stretch available supplies. The situation has created a logistical bottleneck for distributors.

Price and Policy Impacts Felt Across Mid-Atlantic

While officials stress there is no physical shortage of propane, the disruption is affecting markets. Wholesale propane prices in New Jersey have risen sharply. Data from the U.S. Energy Information Administration shows a jump of 30 cents per gallon.

The emergency declaration primarily waives trucking hour regulations. This allows drivers to work longer hours to move available fuel. Pennsylvania has enacted a similar waiver to keep supplies moving.

The National Propane Gas Association is seeking a federal waiver. This would further ease transport rules across the Mid-Atlantic and New England. Repair timelines for the Marcus Hook facility remain uncertain.

The immediate propane shortage is being managed through emergency measures. State officials and industry groups are working to mitigate the heating crisis. The situation highlights the vulnerability of regional energy supply chains.

A quick knowledge drop for you

Q1: What caused the propane supply problem?

An electrical fault at the Marcus Hook Terminal in Pennsylvania on November 19 is the root cause. This critical facility cannot pump propane from its storage, crippling a major supply hub for the region.

Q2: Is there actually a propane shortage?

Industry officials say there is no physical shortage of propane fuel. The issue is a severe supply chain disruption preventing the fuel from reaching customers efficiently.

Q3: How many people are affected?

In New Jersey alone, approximately 186,000 residents use propane for heat. Thousands more in Pennsylvania and the broader Mid-Atlantic region are also impacted by the distribution issues.

Q4: What is the emergency declaration doing?

It temporarily suspends hours-of-service rules for truck drivers. This lets them drive longer hours to deliver propane from alternative sources and reduce delivery delays.

Q5: Have propane prices increased for homeowners?

Residential retail prices have remained relatively stable so far. However, wholesale prices have spiked, which could lead to higher costs for consumers if the disruption continues.