Canadian Propane and Butane Inventories Surged in May 2020

Canada’s primary underground propane inventories increased 60.8% in May to begin June at 1060.3 Mcm, the equivalent of 6.7 MMbbl, according to the Canada Energy Regulator (CER). The total represented a month-to-month gain of a whopping 400.9 Mcm. Compared to a year earlier, stocks surged 381.7 Mcm, or 56.2%.
Propane storages in the West began June at 611.8 Mcm, which corresponds to 3.9 MMbbl, the agency reported. During May, volumes jumped 173.0 Mcm, or 39.4%, and ended 86.9 Mcm, or 16.6%, greater than a year earlier. Supplies in the East began June at 448.5 Mcm, commensurate with 2.8 MMbbl. This staggering advance put propane 227.9 Mcm, or 103.3%, higher for the month, and an even more impressive 294.8 Mcm, or 191.8%, greater than a year prior.

Canadian butane inventories stood at 857.4 Mcm at the beginning of June, showing a 207.2 Mcm, or 31.9%, increase. A year-over-year comparison showed current volumes have surpassed a year earlier’s total. Butane volumes have gained a 211.8 Mcm, or 32.8%, margin. Western butane supplies, at 534.0 Mcm, were 87.0 Mcm, or 19.5%, ahead of the previous month, and 133.4 Mcm, or 33.3% higher than last year. Eastern butane, at 323.4 Mcm, rose 120.2 Mcm, or 59.2%, month over month, and a strong 78.4 Mcm, or 32.0%, higher than a year earlier.

SOURCE: The Weekly Propane Newsletter, July 2, 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.