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Planning for Supply in the Modern Propane Marketplace
s Labor Day will be able to reliably deliver much greater infl uence over
approaches, propane propane to their customers. U.S. propane balances and
marketers across the Exports prices. Likewise, U.S. prices and
Acountry are fi nalizing Exports are expected to differentials to international
their winter supply plans against fall substantially during the next markets impact the level of
the backdrop of record propane several months as the domestic U.S. exports.” Today’s propane
production and exports. A and international price spread marketplace is global, and what
recent ICF study reveals that continues to close. In fact, 24 happens beyond our borders has
propane production in the export cargos were canceled or an effect on what’s happening
United States grew by 70 percent deferred in May and June, and here.
from 2009-2015. Furthermore, exports to Japan fell dramatically Peak Weather Demand
in 2017, more than 10 billion because the country reached Following two warmer than
gallons of propane will leave the its required minimal inventory average winters, customers
United States with transportation levels. During a presentation may be reluctant to enter into
resources virtually unchanged at the summer PERC Council a contract relationship with a
from the winter of 2013/2014. Meeting, RBN Energy highlighted marketer or take proactive steps
Many propane marketers are the new relationship between to plan for their winter fuel needs.
asking the question, “Will I have the U.S. and international When temperatures drop and
access to the propane I need to propane markets saying, fuel use increases, marketers
serve my customers?” “With more propane supply have to be in a position to meet
The bottom line is this: moving to exports than to U.S. the demands of their customers.
proper planning is the critical consumer markets, international Before exports became such a
factor in ensuring marketers developments now exert a signifi cant factor, gas was more
10 Alabama Propane Gas Association | September/October 2017
