Asia, US help Canada reach propane export record
Canada’s propane exports reached record highs in 2024 as new marine export terminals have helped transport propane to international destinations, particularly to Asia, as the global demand for propane also has increased, the U.S. Energy Information Administration (EIA) reports.
Canada’s waterborne propane exports grew 10 percent from 2023 to 2024, according to the EIA. Including all transportation methods, the country exports about 220,000 barrels per day (bpd) of propane.
Meanwhile, U.S. propane imports from Canada have stayed relatively consistent since Canada began waterborne exports in 2019.
Canada is exporting propane from two marine terminals on the coast of British Columbia, in the western part of the country, with a third on the way.
AltaGas has operated the Ridley Island Propane Export Terminal (RIPET) since 2019, with capacity now at 92,000 bpd. Pembina has operated the Prince Rupert Terminal, with a shipping capacity of 25,000 bpd, since 2021. They mark Canada’s first large-scale outlets for direct propane shipments to Asia, where propane is used mainly as a petrochemical feedstock.
In addition, AltaGas and Dutch company Vopak are planning to build the Ridley Island Export Facility, adjacent to RIPET, by the end of 2026. It is expected to have an initial export capacity of 55,000 bpd of propane and butane.
Canada’s LPG export market has certainly changed over the years. Until 2018, all of Canada’s propane exports went to the United States. Although the United States is still the largest destination for the country’s propane exports, the EIA says, it accounted for just 58 percent of exports in 2024 as shipments to Asia have risen sharply.
Most of Canada’s propane exports to the United States have shipped by rail since 2015, with 81 percent arriving by rail last year, the EIA adds. The propane shipped to the U.S. West Coast by rail typically goes to Ferndale, Washington, where AltaGas also operates an LPG export terminal. From there, it will remain in the United States for residential or industrial consumption or get exported again to Asia.
Competitive pricing for Canada’s LPG is only increasing the global demand.
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