US propane exports soar to new high in February

U.S. propane exports reached a record high of 1.845 million barrels per day (bpd) in February, Cost Management Solutions (CMS) reported in the Trader’s Corner newsletter.

Exports on Feb. 10 were up 501,000 bpd from the previous week as U.S. domestic demand plunged 821,000 bpd. Domestic demand was at 1.032 million bpd, compared to 2.067 million bpd during the same week last year. Propane values overseas had been outstripping the U.S. market, keeping demand for U.S. propane high, according to CMS.

Propane exports were part of the discussion during the National Propane Gas Association’s Propane Supply & Logistics Committee meeting, on the final day of January, in New Orleans.

Todd Root of RBN Energy explored at the meeting how the wholesale price of propane had risen 50 percent in the previous month to about 90 cents a gallon.

Crude prices were not driving propane prices upward at the time, and natural gas prices had crashed on weather, Root explains. So, what was up with the price of propane? Propane exports. U.S. propane exports were at about 1.4 million bpd, making up about 65 percent of domestic propane production at the time. Half of the exports were going to Asia, while 20 percent each were going to Europe and Latin America.

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