NEB Publishes Propane Market Review: 2016 Update
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In May 2016, the National Energy Board (NEB) published Propane Market Review: 2016 Update. This update builds on three NEB propane market snapshots released in November 2014, May 2015 and January 2016, and provides a more comprehensive analysis on the propane market since the Final Report to the Minister of Natural Resources and the Minister of Industry: Propane Market Review was released in April 2014.
The update concludes that the propane market in Canada and the U.S. has undergone substantial changes since 2014. While some trends noted in the Final Report continue, especially strong growth in U.S. propane production and U.S. exports, other circumstances have changed. High production and storage, coupled with weak seasonal demand, caused wholesale propane prices to decline to 14-year lows at most hubs, and record lows in Edmonton. Retail propane prices have also declined.
The Canadian propane industry appears to have become more cautious in response to the 2013/14
polar vortex-driven price spike. Midstream and downstream companies have made (and are continuing to make) investments in transportation infrastructure to facilitate movement of propane from producing regions and storage facilities to distribution terminals and consumers. The Canadian propane industry is also looking for new markets and sources of demand.
