Canadian Propane and Butane Inventories Rose in March

Canada’s primary underground propane inventories rose 4.3% in March to 412.3 Mcm, the equivalent of 2.6 MMbbl, according to the Canada Energy Regulator (CER). The total represented a month-to-month gain of 16.9 Mcm. Compared to a year earlier, stocks were 3.1 Mcm, or 0.8%, higher.

BPN's Weekly Propane Newsletter graph depicts swings in LPG pricing and effect on Canadian Propane Prices swings in March 1Q 2020, WPN April 30 2020Propane storages in the West began April at 286.0 Mcm, which corresponds to 1.8 MMbbl, the agency reported. During March, volumes rose 42.5 Mcm, or 17.5%, but ended 64.2 Mcm, or 18.3%, below a year earlier. Supplies in the East began April at 126.3 Mcm, commensurate with 0.8 MMbbl. That level marked a drop of 25.6 Mcm, or 16.9%, for the month, but an impressive gain of 67.3 Mcm, or 114.1%, from a year prior.

Canadian butane inventories stood at 354.1 Mcm at the beginning of April, reflecting a 71.6 Mcm, or 25.3% gain. A year-over-year comparison showed current volumes are off 54.4%, or by 422.2 Mcm. Western butane supplies, at 265.1 Mcm, were 46.8 Mcm, or 21.4%, ahead of the previous month, but 342.7 Mcm, or 56.4%, behind last year. Eastern butane, at 89.0 Mcm, was 24.8 Mcm, or 38.6%, higher month over month, but down by 79.5 Mcm, or 47.2%, from a year earlier.

SOURCE: The Weekly Propane Newsletter, April 30, 2020. 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.