LP Gas, February 2014
PROPANE INDUSTRY NUMBERS Midwest Propane Movements 2014 PIPELINE SYSTEM Propane Spot Prices 2012 14 DOLLARS PER GALLON U S Energy Information Administration Conway Mont Belvieu Spread Mont Belvieu PADD 3 Conway PADD 2 dollars per gallon Cold weather Corn harvest Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 U S Energy Information Administration Thomson Reuters Perfect storm of supply demand in Midwest P ropane supplies in the Midwest were extremely tight in January with the arrival of extremely cold temperatures The Midwest spot price of propane at Conway Kan spiked far above the Gulf Coast spot price at Mont Belvieu Texas The high propane prices in the region were the result of both increased demand for crop drying in November and increased demand for space heating in the current cold weather For the week ending Nov 1 2013 Midwest propane inventories dropped more than 2 million barrels the largest one week stock draw in any November since 1993 The demand prompted an upward price response and propane at Conway moved to a 3 cent per gallon premium over Mont Belvieu during the first week of November After crops were harvested logistical problems prevented the Midwest from replenishing inventories before winter The Cochin Pipeline was out of service for maintenance and rail transportation disruptions curtailed deliveries from Mont Belvieu and Conway as well as from Canada Then came the cold weather at a time when markets were already tight LPG 400 350 300 250 200 150 100 050 000 050 100 26 LPGas February 2014 www LPGasmagazine com
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