Natural Gas for Seed Drying

UGI Corporation (King of Prussia PA; NYSE: UGI; ~$9.5B revenue FY2024) is the parent of AmeriGas Propane Inc. — the largest retail propane distributor in the United States by volume, with ~2 million customers across all 50 states. UGI also operates Pennsylvania utility gas distribution, midstream assets, and European LPG operations. AmeriGas supplies propane to rural grain drying operations across the US Corn Belt through its network of ~1,900 distribution locations. In FY2023-2024, UGI/AmeriGas faced declining volumes as mild winters reduced residential demand; however, agricultural propane demand from grain drying remained relatively inelastic because harvest timing is biologically determined. AmeriGas holds ~25-30% of the US retail propane market.

Panhandle Eastern Pipe Line Company, LP (Houston TX; subsidiary of Energy Transfer LP; NYSE: ET) operates the original Panhandle Eastern Pipeline — a 16,000-mile interstate natural gas transmission system running from the Permian Basin and Anadarko Basin (Oklahoma/Texas/Kansas) through the US Midwest corn belt states of Kansas, Missouri, Illinois, Indiana, Ohio, and Michigan. Panhandle Eastern is the primary interstate pipeline delivering natural gas to local distribution companies (LDCs) serving Iowa, Illinois, and Indiana grain-drying markets. The pipeline's fall capacity constraints — when harvest-season grain drying demand competes with early residential heating season — are a recurring operational challenge. Panhandle Eastern was spun out of Southern Union Company (acquired by Energy Transfer 2012). Total pipeline capacity: ~2.9 Bcf/d.

Ferrellgas Partners, L.P. (Overland Park KS; private; Jim Ferrell family; ~$1.9B revenue FY2024; Propane subsidiary: Ferrellgas LP; brand: Blue Rhino cylinder exchange) is the second-largest retail propane distributor in the United States with ~1 million residential and agricultural customers. Ferrellgas is the dominant propane supplier in the rural US Midwest — Kansas, Nebraska, Iowa, Missouri, Minnesota, South Dakota — the same region where grain drying propane demand spikes each fall harvest. Ferrellgas went through Chapter 11 bankruptcy in December 2020 and emerged restructured in March 2022. The bankruptcy was partly triggered by the 2020-2021 propane price volatility combined with debt from aggressive expansion. Agricultural propane customers — particularly grain elevator operators and large-acreage corn farms — are Ferrellgas's highest-volume accounts, typically consuming 10,000-50,000 gallons per harvest season.

Nicor Gas (Naperville IL; subsidiary of Southern Company Gas, itself subsidiary of Southern Company; NYSE: SO; one of the largest US natural gas distribution utilities) serves ~2.2 million customers in northern and central Illinois — the nation's second-largest corn-producing state. During fall harvest season (September-November), Nicor Gas coordinates with Panhandle Eastern, Rockies Express, and ANR Pipeline for additional capacity to serve the spike in grain drying demand from commercial grain elevators and large farm operations in central Illinois. Nicor Gas's service territory includes McLean County, Champaign County, and Sangamon County — counties in the heart of Illinois's 2.1-billion-bushel annual corn crop that require industrial-scale natural gas for post-harvest drying.

Superior Plus Corp. (Toronto ON; TSX: SPB; ~CAD $2.5B revenue 2024) is a Canadian-listed energy distribution company that acquired Suburban Propane Partners LP — the third-largest US retail propane distributor — in December 2022 for approximately US$900M. Suburban Propane (Whippany NJ) serves ~700,000 residential, commercial, and agricultural customers across the eastern and central US through 700+ distribution locations. Superior Plus also operates its own Energy Distribution segment in Canada (Superior Propane — largest Canadian propane retailer) and acquired multiple regional US propane companies in 2019-2023. The combined Superior Plus/Suburban Propane entity serves rural grain-drying markets in Ohio, Indiana, Michigan, and the Mid-Atlantic agricultural belt.

TC Energy Corporation (Calgary AB; TSX/NYSE: TRP; ~CAD $15.2B revenue 2024) is one of North America's largest energy infrastructure companies, operating the NOVA Gas Transmission Ltd. (NGTL) system — the primary natural gas pipeline grid serving Alberta and British Columbia. NGTL delivers natural gas to agricultural users in Alberta including grain dryer operators in the Peace River grain belt (northern Alberta) and central Alberta barley/canola growing regions. TC Energy also operates the Canadian Mainline connecting Alberta gas to Ontario/Quebec. Canadian Prairie grain drying (Alberta, Saskatchewan, Manitoba) depends on NGTL-connected distribution utilities including ATCO Gas (Alberta) and SaskEnergy (Saskatchewan). TC Energy announced spinning off its liquid pipelines business as South Bow Corporation in 2024.