Canadian Inventories Decrease, But Remain Strong

Canada’s primary underground propane inventories fell by 31.2% in February, according to the Canada Energy Regulator (CER). The total represented a major month-to-month decrease of 521.2 Mcm. Compared to a year earlier, stocks were higher, with 753.0 Mcm, or 189.5%, more product on hand.

Propane storages in the West started March considerably lower at 662.1 Mcm, which corresponds to 4.2 MMbbl, the agency reported. During February, volumes decreased by 293.9 Mcm, or 30.7%, but they remained more than double the year prior’s level of 243.5 Mcm, for a year-over-year gain of 418.6 Mcm, or 171.9%. In the East, supplies began the month of March at 488.3 Mcm, commensurate with 3.1 MMbbl. This loss put propane 227.3 Mcm, or 31.8%, lower for the month, but a major increase of 333.4 Mcm, or 217.3%, above a year earlier.

Canadian butane inventories stood at 655.6 Mcm at the beginning of March, for a loss of 177.9 Mcm, or 21.3%, from February. Like propane, the year-over-year comparison finds butane volumes continue to be more than double the prior year’s total, with inventories 373.1 Mcm, or a strong 132.1%, above 2020. Western butane supplies, at 514.8 Mcm, were off by 102.1 Mcm, or 16.6%, from the previous month, but were 296.5 Mcm, or an incredible 135.8%, higher than last year. Eastern butane, at 140.8 Mcm, was down 75.8 Mcm, or 35.0%, month over month, but totaled 76.6 Mcm, or 119.3%, above a year earlier.

Source: The Weekly Propane Newsletter, March 25, 2021. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.