|  Clifton Linton

The Propane Rail Logistics Land Mine for the 2021-2022 Winter

So far, so good for propane distribution. It's been a mild fall. Crop drying demand for propane has been minimal and there's been no early cold snap. That said, it could be difficult and costly to get supply to rail-dependent North American customers if a strong winter shows this year.

The reason for this caution is based on several underlying factors:

1. North America has below normal stocks of propane and butane. The Energy Information Administration reported that weekly underground propane stocks stood at 73.6 million bbl in the week ending Oct. 15, 2021. That's 25% below year ago levels. The Canada Energy Regulator reported that monthly propane inventories stood at 12.7 million bbl...

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