Western Canada saw large drops in LPG inventories in September, especially butanes, according to data released by the Canadian Energy Regulator on October 15. Butanes inventories in Western and Eastern Canada, and propane inventories in Eastern Canada, are below normal for this time of year, while Western Canada propane inventories are near normal for this time of year.
Western Canadian propane inventories fell by 889 Mbbl month-over-month, to exit September at 6.92 MMbbl, or about 1% below the prior five year average for September (see left chart below), after exiting August above the prior five-year August high. In Eastern Canada, stocks gained 281 Mbbl month-over-month, but remain near prior five-year seasonal lows, exiting September at 3.1 MMbbl (right chart below).
Data Source: Canadian Energy Regulator
Butanes inventories in Western Canada saw an even steeper drop, declining by 1.12 MMbbl, to exit September at 3.75 MMbbl, which is 10% below the prior five-year average for September (see left chart below). The large decline in Western Canadian LPG stocks, and large 3.3 MMbbl build in Western Canadian inventories of NGL mix, may imply low utilization of Alberta fractionation capacity in September. Eastern Canada butanes inventories fell by 369 Mbbl to exit September at 2.91 MMbbl, which is 14% below the five-year average for September (see right chart below).
Data Source: Canadian Energy Regulator
