U.S. Propane Inventories Well Stocked Heading Into Winter Heating Season, EIA Says

(Reuters) – The U.S. is well stocked with propane heading into the winter, the U.S. Energy Information Administration said on Tuesday.

For the week ending September 26, U.S. propane inventory was 103 million barrels, about 13 million barrels more than the previous five-year average for this time of year, the EIA said, citing data from its weekly petroleum status report.

Propane inventories are typically indicative of its supply and demand balances, with winter months creating more demand due to propane’s use as the main heating fuel in about 5% of U.S. homes, primarily in the northern parts of the Midwest and Northeast.

For propane supply, propane gas plant production increased 5% in the first seven months of this year compared with the same period in 2024, the EIA said.

U.S. propane stocks usually build up from April to September due to lower consumption, and decline from October to March when demand rises.

This year, weekly inventories have consistently remained above the five-year average since late May, the EIA said, adding that the Gulf Coast, where most U.S. petrochemical consumption and propane export capacity are located, accounts for about 70% of U.S. propane storage capacity.

In some years, Midwest propane inventories can be affected by grain-drying demand, especially for corn, the EIA said.

The U.S. Department of Agriculture expects that this year’s corn crop will be harvested slightly later than the 2020–24 average, which may require more propane for grain drying. Grain-drying demand typically draws on Midwest inventories in late October and early November.

Reporting by Anjana Anil in Bengaluru; Editing by Mark Porter

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