Canadian Propane and Butane Inventories Soared In April

Canada’s primary underground propane inventories increased 59.9% in April to 659.4 Mcm, the equivalent of 4.2 MMbbl, according to the Canada Energy Regulator (CER). The total represented a month-to-month gain of a whopping 247.1 Mcm. Compared to a year earlier, stocks increased 1.5 Mcm, or 0.2%.

Propane storages in the West began May at 438.8 Mcm, which corresponds to 2.8 MMbbl, the agency reported. During April, volumes jumped 152.8 Mcm, or 53.4%, but ended 103.1 Mcm, or 19.0%, below a year earlier. Supplies in the East began May at 220.6 Mcm, commensurate with 1.4 MMbbl. This marked advance put propane 94.3 Mcm, or 74.7%, higher for the month, and an impressive 104.7 Mcm, or 90.3%, above a year prior.

Canadian butane inventories stood at 650.2 Mcm at the beginning of May, reflecting a 296.1 Mcm, or 83.6% gain. A year-over-year comparison showed current volumes are still trailing but by a slimmer margin. Butane volumes are off 6.9%, or by 47.9 Mcm. Western butane supplies, at 447.0 Mcm, were 181.9 Mcm, or 68.6%, ahead of the previous month, but 67.1 Mcm, or 13.1%, below last year. Eastern butane, at 203.2 Mcm, was 114.2 Mcm, or 128.3%, higher month over month, and a scaled back 19.2 Mcm, or 10.4%, above a year earlier.

SOURCE: The Weekly Propane Newsletter, May 28, 2020. 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.