Slide 16 of 25
Notes:
- The seasonality in demand comes mainly from the residential and commercial propane customers who use it for heating.
- For the most part, the major components of propane demand are chemical, residential, industrial and farm.
- Combined heating and chemical demand account for about ¾ of total propane demand. These sectors are somewhat complementary, with chemical demand giving way when propane prices strengthen.
- Ordinarily, agricultural demand does not impact regional propane markets except when unusually high and late demand for propane for crop drying combines with early cold weather to cause greater-than-normal demand.
- We will be watching the agricultural sector, since the Agriculture Economic Research Service has predicted a record corn crop this year.
