Canadian Propane, Butane Inventories Higher Year-Over-Year

Canada’s primary underground propane inventories increased by 1.7% in September to start October 2020 at 2376.4 Mcm, the equivalent of 15.0 MMbbl, according to the Canada Energy Regulator (CER). The total represented a minimal month-to-month gain of 39.8 Mcm. Compared to a year earlier, stocks were up markedly, with 1063.4 Mcm, or 81.0%, more product on hand.

Propane storages in the West began began October at 1489.4 Mcm, which corresponds to 9.4 MMbbl, the agency reported. During September, volumes increased by a slim 12.0 Mcm, or 0.8%, but ended a sizeable 688.9 Mcm, or 86.1%, greater than a year earlier. In the East, supplies started October at 887.0 Mcm, commensurate with 5.6 MMbbl. This advance put propane 27.7 Mcm, or 3.2%, higher for the month, and a sizeable increase of 374.5 Mcm, or 73.1%, above a year prior.

Canadian butane inventories stood at 1414.9 Mcm at the beginning of October, for a slight loss of 7.4 Mcm, or 0.5%, from a month earlier. The year-over-year comparison, again, shows current volumes continue to surpass the prior year’s total. Butane volumes have increased by 564.0 Mcm, or 66.3%. Western butane supplies, at 949.8 Mcm, were 39.0 Mcm, or 4.3%, higher than the previous month, and 465.0 Mcm, or 95.9% higher than last year. Eastern butane, at 465.0 Mcm, fell 46.6 Mcm, or 9.1%, month over month, but totaled 98.9 Mcm, or 27.0%, more than a year earlier.

SOURCE: The Weekly Propane Newsletter, October 22, 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.