Propane Supply/Demand

Canadian propane sources could replace up to 20% of domestic gasoline demand. Approximately 70%, or 8.6 Billion litres, of Canada’s annual production of propane is exported because of the lack of domestic demand. Canadian propane is supplied primarily by Alberta gas plant production. The excess supply produced in Canada is shipped to US markets for home, agriculture, commercial and petrochemical purposes.

The current Canadian propane transportation segment consumes about 300 million litres of propane, which is about 10% of overall domestic demand. There are currently about 50,000 to 60,000 propane vehicles operating in Canada today. If that number were to increase by 60,000 the additional demand could be 1.2 billion litres per year and this would still only equal about 10% of the total propane supply in Canada. It is anticipated that additional demand for propane as a transportation fuel will not disrupt the current market conditions in Canada. The Purvin and Gertz Inc, Propane Market Study provides an analysis of Canadian Propane Supply and Demand for 2001 to 2006. Gasoline and diesel however, will face growing challenges to meet demand, as supply disruptions, such as hurricanes and other refinery output issues, continue.