April 2023: National strategic propane reserve

April 12, 2023 By    

Each month, LP Gas provides updates on the U.S. propane market, as well as the latest trends. The data for April 2023 is sourced from an LP Gas survey of industry members on Instagram and LinkedIn.

Source: LP Gas survey

Source: LP Gas survey

Commentary: Sen. Debbie Stabenow, D-Mich., introduced a bill that would require the energy secretary to conduct a study to determine the feasibility of a national strategic propane reserve.

The National Propane Gas Association (NPGA) says it secured key changes in the proposed legislation. This includes backing the U.S. Energy Information Administration’s involvement with the study; considering alternatives to a national reserve; and ensuring the propane industry is engaged in the development of the study.

NPGA says it doesn’t have a position on the possibility of a propane reserve, which would exist separately from the strategic petroleum reserve. Neither the association nor its Governmental Affairs Committee has come out in favor or opposition to the legislation.

LP Gas asked readers whether they believe the U.S. propane industry would benefit from a national strategic propane reserve. The majority of respondents (75 percent) say it would.

Anne Keller, managing director of Midstream Energy Group, believes: “If we don’t do it now, we’ll regret it much sooner rather than later. China’s planning enough propylene units to use up over 500 thousand barrels per day of propane, and our production isn’t going to grow anywhere near that much.”

Read more: Bill would require study into propane reserve feasibility

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