Canadian Inventories Retreat, But Are Still Strong

Canada’s primary underground propane inventories fell by 11.4% in December to start January at 2044.8 Mcm, the equivalent of 12.9 MMbbl, according to the Canada Energy Regulator (CER). The total represented a major month-to-month decrease of 262.6 Mcm. Compared to a year earlier, stocks continued to be markedly higher, with 1282.0 Mcm, or 168.1%, more product on hand.

Propane storages in the West started January slightly lower at 1183.6 Mcm, which corresponds to 7.5 MMbbl, the agency reported. During December, volumes decreased by 205.3 Mcm, or 14.8%, but, again, better than double the year prior’s level of 458.6 Mcm, for an outstanding 725.0 Mcm, or 158.1%, gain. In the East, supplies began the New Year at 861.1 Mcm, commensurate with 5.4 MMbbl. This loss put propane 57.4 Mcm, or 6.2%, lower for the month, but a strong increase of 557.0 Mcm, or 183.2%, above a year earlier.

Canadian butane inventories stood at 1063.1 Mcm at the beginning of January, for a loss of 238.3 Mcm, or 18.3%, from December. The year-over-year comparison finds current butane volumes, like propane, continue to be more than double the prior year’s total. Butane volumes have risen by 572.6 Mcm, or a strong 116.7%. Western butane supplies, at 787.6 Mcm, were off by 171.3 Mcm, or 17.9%, from the previous month, but were 495.8 Mcm, or an amazing 169.9%, higher than last year. Eastern butane, at 275.6 Mcm, was down 66.8 Mcm, or 19.5%, month over month, but totaled 76.9 Mcm, or 38.7%, above a year earlier.

Source: The Weekly Propane Newsletter, January 28, 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.