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    Canadians Benefit From Growth in Propane During the Pandemic

    Canadians Benefit From Growth in Propane During the Pandemic  

    Despite international challenges all industries faced last year during the COVID-19 pandemic, a recent market snapshot by the Canadian Energy Regulator reports that petroleum exports from Western Canada increased in 2020. Compared to the previous year, Canadian marine propane exports grew by 77%, with a majority of shipments going to Asia which has seen an increased demand for propane as petrochemical feedback consumption grows 

    As well, Asia’s major propane supplier Saudi Arabia made a large supply cut in 2020 of 1 million barrels a day in February and March, a calculated move from oil superpower that was opposite to other recent Saudi oil-policy actions. This decision was reportedly made unilaterally by Saudi Arabia’s Energy Minister Abdulaziz bin Salman. This change caused prices to increase to a ten-month high, along with increasing the demand for Canadian and American suppliers, which is expected to increase going forward. Canada has quite a few advantages for propane export to Asia compared to competitors as we have a shorter shipping distance to Japan, which makes up a large portion of the Asian demand. As well, Canadian tankers do not need to travel through the Panama Canal like tankers from the Gulf Coast do, which is subject to delays and busy ship traffic.


    How is Canada transporting Propane to Asia?

    “A liquefied petroleum tanker is a gas carrier built to transport large volumes of liquefied petroleum gases (LPGs), including propane and butane. The ships, called gas tankers, vary in size and method used to keep the LPGs in liquid form. The LPGs may be pressurized, refrigerated, or both.” – CER


    Driving future growth

    Another positive addition to Canada’s list of advantages is the Prince Rupert Terminal, an export tunnel located on Canada’s western coast, which will exclusively handle propane handling and storage. Propane is delivered from Pembina’s Redwater Complex near Edmonton, and carries propane extracted from natural gas supplies in BC and Alberta. Learn more about the construction of this new export terminal here.

    This snapshot report from the Canadian Energy Regulator is good news for Albertans as we look for ways to rebuild our economy. Propane will definitely be in the mix. 

    The True Nature of AiM Land –

    We are a full service land consulting firm with innovative and expert knowledge of the land. We offer expertise for a broad spectrum of major energy projects across Canada and the United States. We are a full-service broker that does all portions of a project internally; we do not outsource any part of the work. We utilize leading edge technology to reduce costs, improve communications, and ultimately deliver the project more efficiently and done for the best price. Our strong and dynamic team brings extensive knowledge from the field and varying experiences to each project.

    Reach out to connect with us to learn how we can help with your project. 

    AIM-Land Circle R2
    Gabrielle Leakes
    Operations Manager | AiM Land
    D: 403-648-5421
    AiM Land Services