Hundreds of thousands of New York households and businesses use propane to heat their homes and offices, harvest crops, and fuel equipment. Propane is not produced in New York, so propane must be imported and stored underground during the summer (when consumer demand is low) and withdrawn for consumption during the winter (when consumer demand is highest). Residents and businesses who depend on propane suffer if there’s not enough propane available in local storage facilities during the winter. 

Historically, the vast majority of propane consumed within New York was imported by pipeline. However, recent system changes by pipeline companies have reduced the amount of propane that can be delivered by pipeline. This means consumers become even more reliant on local storage facilities to source their propane needs during the winter. Increased local storage will bring long-term energy stability for New Yorkers.

A 2003 Government Accountability Office report on the causes of propane price volatility found that price spikes are caused by the inability of propane supplies to adjust to unusual demand increases, such as those imposed by especially cold winters like last years. The Finger Lakes LPG Storage project will protect New Yorkers against propane price volatility for years to come. 

This May, the U.S. Senate Committee on Energy and Natural Resources held a hearing on last winter's shortage. The Finger Lakes LPG Storage Facility was repeatedly referenced as an important part of the solution to this regional and national problem.


At the height of last year’s supply constraints, the NYPGA held a press conference at the State Capitol in Albany with regional and national industry leaders at to highlight the issue. A video from the event can be viewed below.