Can’t Get Next to You (But Now I Can!) – Propane Supply Growth Close to Largest Centers of Demand
Over the past two years, propane production has grown like crazy, and in several past blogs we’ve discussed the impact of those increased supplies on exports. That has been a very big deal for propane markets. But an equally significant development is the location of that production growth. Because much of the new propane supply is right next door to the two largest propane markets in the U.S. – the Northeast and the Midwest. Considering what happened to the propane market during the Polar Vortex winter of 2013-14 (shortages and price spikes), the importance of production growth near to demand cannot be overstated. It is very good news, both for the market in general and propane consumers in particular. Today we start a new series examining what has happened to propane supply and what it means to propane markets.
