Storage gaps threaten US winter propane supply

Analysis of US propane inventory components-primary, secondary, and tertiary-in advance of the 2000-2001 heating season has indicated that, during periods of severe cold weather, supplies may be unable to meet demand.On the macro level, US propane markets have sufficient flexibility to meet heating-season demand. But primary supplies of propane are concentrated in a few major supply hubs, such as Mont Belvieu, Tex., Conway, Kan., and Sarnia, Ont.Heating-market demand is distributed over a wide geographic area. Propane markets rely on a few pipelines that deliver product from primary supply centers to end-users. These pipelines have finite pumping capacities.Past experience of periods of s...

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