Insight
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8 Pages

Containment Fears for Western Canadian Propane


Containment Fears for Western Canadian Propane

Report summary

Increasing propane supply with limited demand growth has put propane at risk for storage containment issues, particularly in regional propane markets farthest from the US gulf coast. This Insight will highlight an example of containment concerns currently occurring in the Canadian propane market. Oversupply in Western Canada has pushed Edmonton propane prices well below BTU values (propane traded at 7 cents/gallon or equivalent to 77 cents/mmBTU) and currently reflect storage containment risks.

What's included?

This report includes 1 file(s)

  • Containment Fears for Western Canadian Propane PDF - 565.25 KB 8 Pages, 0 Tables, 9 Figures

Description

This NGL Insight report highlights a key issue surrounding this topic, and discusses the implications for those involved.

For market participants, suppliers, and advisors who need to look at current industry trends, risks and issues around this topic, this report gives you an expert point of view to help inform your decision making.

Wood Mackenzie provides detailed commercial and strategic insight into the North American NGL markets. Our data-rich analysis is driven from our integrated energy and petrochemicals research, which gives you a regional and national perspective on ethane, propane, butanes and pentanes.

From gas processing to exports, we help you to understand the future direction of the NGL markets and make key decisions.

  • Oversupply of Propane in Western Canada
  • Storage Containment Concerns in the US
  • Storage Containment with Futures Markets
  • Managing Edmonton Propane Risk with Conway Futures

In this report there are 9 tables or charts, including:

  • Oversupply of Propane in Western Canada
    • Conway and Edmonton Propane Prices
    • Conway - Edmonton Propane Price Spread
    • AECO Natural Gas and Edmonton Propane (BTU basis)
    • Western Canadian Propane Inventories
  • Storage Containment Concerns in the US
    • Containment Fears for Western Canadian Propane: Image 5
  • Storage Containment with Futures Markets
    • Edmonton Propane Price Relationship with Conway Prices
  • Managing Edmonton Propane Risk with Conway Futures
    • Illustrative Example of Contango Storage Price Parities for Conway
    • Conway Propane Futures Curve
    • Conway Propane Month over Month Futures Price Difference
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