Canada’s propane market has quickly morphed from one characterized by abundant supply to one facing a tightening supply/demand balance, with direct exports to Asia playing an increasingly important role. This tension became evident in May 2019, when the start-up of the Ridley Island Propane Export Terminal (RIPET) in British Columbia, Canada’s first direct export connection for propane to Asian markets, effectively eliminated the usual seasonal surplus for propane in Western Canada. With rail exports of propane to the U.S. often reliant on that excess for restocking in the summer months and as a reliable fallback supply in the cold winter months, the prospect of fewer or no periods of excess supply may be signalling trouble for some U.S. regions that have come to rely on those volumes. What’s more, within a few months, another propane export terminal in BC will be starting up, further reducing what’s left for the U.S. market. In today’s blog, we conclude our series examining the Western Canadian propane market by considering the impacts of Canada-to-Asia propane sales on U.S. propane consumers and propane prices.
The Canadian propane market is transitioning into an all-new era. We don’t just mean changes wrought this year by wild oil price swings, producer spending cutbacks, and the unpredictable demand landscape generated by COVID-19 disruptions – although these have been important. The new era started to emerge in mid-2019 with demand and exports having caught up to and more frequently surpassing available supplies. The result has been a rapid tightening of a market once thought to be grossly oversupplied outside of higher demand winter heating needs.
We started exploring Western Canada’s propane market in Part 1 of this series, where we delved into the changes brought about by the start-up of AltaGas and Vopak’s jointly owned, 50-Mb/d RIPET facility 15 months ago. RIPET is Canada’s first propane export terminal providing direct access to Asian markets from its own shores and it reached its export capacity within a month of opening. It joined the only other propane export terminal operating on the West Coast, the Petrogas-owned terminal in Ferndale, WA, which sends out propane that is railed in from Western Canada and other sources.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
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About the song
"Hold on to Your Hat" was written by Mick Jagger and Keith Richards and appears as the fourth cut on side one of The Rolling Stones’ 21st studio album, Steel Wheels. Jagger had most of this song written when he met up in Barbados with Richards to work on Steel Wheels in 1989. Personnel on the record were: Mick Jagger (lead vocal, rhythm guitar), Keith Richards (lead guitar), Ron Wood (bass), Charlie Watts (drums), and Chuck Leavell (keyboards).
Steel Wheels was recorded between March and June 1989 at AIR Studio in Montserrat and Olympic in London. Produced by The Glimmer Twins (Jagger and Richards), and Chris Kimsey, it was released in August 1989. It marked the renewal of Jagger and Richards’ working relationship and would launch the band’s largest world tour to date. It would also be bassist Bill Wyman's final full-length album with the Stones. He would depart the band for good in January 1993. Steel Wheels was released in August 1989 and went to #3 on the Billboard Top 200 Albums chart. Four singles were released from the album. It has been certified 2x Platinum by the Recording Industry Association of America.
The Rolling Stones are an English rock band formed in London in 1962. Seven members have passed through its ranks since its formation. The current lineup features original members Mick Jagger, Keith Richards, and Charlie Watts, along with long-time member Ron Wood. They have released 30 studio albums, 28 live albums, 26 compilation albums, three EPs, and 121 singles. The Rolling Stones have sold over 240 million records worldwide. They have won one Billboard Music Award, four Grammy Awards, three MTV Video Music Awards, and two World Music Awards. They are members of the Rock and Roll Hall of Fame and have a Grammy Lifetime Achievement Award. The band still records and tours to this date, with touring on hold due to COVID-19.
