Canada’s propane supply chain is in good health, but external factors like strikes and blockades and internal sector factors like exports and rail capacity are having an impact. These factors combined raise questions, and there remain gaps in knowledge related to the security and resilience of Canada’s propane supply chain. An overarching insight is the connectivity of the supply chain: upstream changes impact downstream deliveries. Changes in policy, regulation, and investment at any point in the supply chain can have a cascading effect. Long-term policy aimed at ensuring energy security and reliability relies on improving our knowledge.
Through a review of the industry, market literature, and economic data, this paper examines three issues that create the most vulnerability in Canada’s propane supply chain: the expansion of propane by rail; pipeline disruptions; and the capacity and location of downstream storage.