Producer sharpens propane inventory focus further downstream

August 20, 2021 By    

When Bruce Leonard of Targa Resources talks propane supply and winter preparedness, he places a greater emphasis on the industry filling its downstream storage locations than on tracking propane inventory builds at the hubs.

“We don’t need 100 million barrels of storage going into wintertime,” says Leonard, the outgoing vice chairman of producers on the Propane Education & Research Council (PERC), who presented during the July council meeting in Colorado.

In fact, Leonard says, the industry will have more supply success by keeping full 60 regional wholesale storage locations that each offer greater than 50,000 barrels of propane. Wholesale suppliers and producers fill these locations from May through October to meet customer contract obligations, he adds.

In addition to the industry having full regional storage locations, propane marketers must ensure their tanks and their customers’ tanks are full going into winter.

The industry has had success in recent years, Leonard says, but with talk this year centered on rising prices and U.S. propane inventory below year-ago and five-year-average levels, it must be fully committed.

“Retailers are doing the things you want retailers to do as you prepare for the winter, and hopefully their customers will respond,” adds Tucker Perkins, president and CEO of PERC.

Featured image: tttuna/E+/Getty Images

About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at or 216-706-3748.

Comments are currently closed.