Commercial Propane Tanks: Should You Buy or Rent?

The Cat5 Emergency Response Team deploying generators to the Carolinas in preparation for Hurricane Arthur.

This is a tank that was installed by an unknown vendor. The tank has no identifying stickers, was not properly secured, is too close to the fence, and the valves are rusted. It violates numerous NFPA and state propane compliance codes.

Many companies’ backup generators require propane tanks and fuel to run their operations during commercial power outages. Propane providers have typically promoted the renting or leasing of tanks in order to save their customers money. However, there are some restrictions that come with renting or leasing a tank from a propane provider and at times these restrictions can actually cost you more in the long run.

Disadvantages of Leasing Propane Tanks

• Tanks and other leased equipment are not maintained or brought up to code with the constantly changing NFPA requirements.
• Traditional propane delivery companies place customers that use a low volume of fuel (i.e. Customers that use propane for backup power only) at the bottom of their priority list (even during emergency situations) for refills and maintenance.
• During a storm or other catastrophic event, you are at the mercy of your propane providers’ schedule for refills. Many traditional propane companies do not work during these times or they place their residential customers’ needs before their commercial customers.
• State and federal laws prevent any company from fueling another company’s tank unless it is a declared disaster.
• Many companies with multiple sites requiring propane powered generators spend hundreds of thousands of dollars yearly on tank rental and maintenance fees. These companies could alleviate those costs by purchasing their own equipment and obtaining fueling, maintenance, and repair services from a secondary vendor.

Benefits of Owning Your Commercial Propane Tanks

• Freedom of choosing any vendor for propane deliveries.
• Dramatically increased fuel delivery response times during natural disasters.
• No annual tank rental invoices.
• No tracking of numerous leases and tank owners.
• Eliminate the cost of unnecessary or failed deliveries during natural disasters.
• Eliminate site downtime with freedom to choose your propane delivery provider.

So what’s the solution?

Our solution to the tank ownership vs. rental dilemma is our Commercial Propane Management Program. We will assist with the tank purchasing process as well as provide the maintenance and fueling services required to keep your propane systems and backup power solutions maintained and ready to operate no matter what happens.

We offer:

• Propane tank installation and repair
• Propane tank and system compliance inspections and maintenance
• Propane fuel delivery and management services
• 24 Hour Disaster Response/Emergency Services
• Customized reporting and consolidated billing

Our Propane Management Program ensures that you never have to worry about how to keep your backup power systems running because we keep them in top working condition for you, whether you own your propane tanks or not.

To find out how Cat5 Resources could save your company money with our Propane Systems Management Program, contact us.