Canadian Propane Inventories Retreat 41.6% in January, Butane Falls

Canada’s primary underground propane inventories fell 41.6% in January 2020 to 445.1 Mcm, the equivalent of 2.8 MMbbl, according to the Canada Energy Regulator (CER). The draw represented a month-to-month loss of 317.7 Mcm. Compared to a year earlier, stocks stood 397.1 Mcm lower, down 47.2%.

Propane storages in the West exited the first month of 2020 with 266.9 Mcm on hand, which corresponds to 1.7 MMbbl, the agency reported. Volumes declined 191.7 Mcm, or 41.8%, over January and ended 360.2 Mcm, or 57.4%, under last year. Supplies in the East began February at 178.2 Mcm, commensurate with 1.1 MMbbl. That level marked a drop of 125.9 Mcm, or 41.4%, for the month and a retreat of 36.9 Mcm, or 17.2%, for the year.

Canadian butane inventories stood at 340.4 Mcm at January’s close, reflecting a 30.6% draw on stocks that settled 150.1 Mcm lower. A year-over-year comparison showed volumes down 66.6%, or by 678.2 Mcm. Western butane supplies, at 197.5 Mcm, or 71.6%, behind the previous year. Eastern butane, at 142.9 Mcm, drew down by 55.8 Mcm, or 28.1%, month over month to stand 179.3 Mcm, or 55.6%, below the prior year.

Recapping the CER report:

(SOURCE: The Weekly Propane Newsletter, March 5, 2020. Subscribe for all the latest posted and spot prices from all major terminals and refineries around the U.S., market analysis and commentary delivered to inboxes weekly.)