Industry & Economy

The Canadian Propane Industry

Canada’s strong and growing propane industry involves hundreds of businesses, tens of thousands of employees, and millions of customers across Canada.

The industry is comprised of the some of the largest and best known energy companies in Canada, that concentrate on the production side, and many small to medium sized businesses that direct the wholesaling, retailing, marketing and transportation segments.

 

Infrastructure & Supply

Propane infrastructure in Canada is well-developed, with tremendous capacity to produce an abundant supply that is highly portable via truck, rail and pipeline across Canada, and into the U.S.

There are two major propane trading hubs in Canada – Edmonton, Alberta and Sarnia, Ontario.

Around 92% of Canada’s propane is extracted as a Natural Gas Liquid (NGL) mix from natural gas at hundreds of field plants in Alberta, British Columbia and Saskatchewan. Once extracted, NGLs are usually sent to fractionation plants to be separated into individual products, including propane.

The remaining supply is produced at refineries located in every province except Manitoba, Nova Scotia and PEI.

 

Demand

Around 50% of the propane produced in Canada is used domestically and the remainder is exported. Propane demand in Canada generally peaks in the winter months, due to the seasonal heating load.

Propane utilization in Canada is divided as follows:

Propane Demand in Canada Chart

 

 

 

 

 

 

 

To learn more about the propane industry, view our Canada’s Propane Story fact sheet.

 

Economic Impacts

Canadian propane sales are expected to expand favorably between 2017 and 2025, providing an annual average of $4.4 billion ($2016) worth of sales that are estimated to support:

  • close to $4.4 billion in GDP across Canada per year
  • close to 21,000 jobs annually across the economy
  • close to $1 billion per year in government revenues

Employment

The Canadian propane industry supports around 21,000 jobs. Canadians are employed in the propane industry in many roles, including in extraction, production and refining, transportation and distribution, equipment manufacturing, and sales and marketing.

These jobs are spread across the country, with around 50% situated in Alberta, the heartland of Canada’s propane industry. There are also large propane industry workforces in British Columbia, Saskatchewan, Ontario and Quebec.

 

Economic Value, Taxes & Royalties

Each year, the Canadian propane industry generates over $4.4 billion for the Canadian economy. As with the industry’s employment numbers, around 50% of this value is created in Alberta.

Canada’s national, provincial and territorial governments are beneficiaries of a strong propane industry, with propane operations across the country generating over $1 billion in taxes and royalties each year. These funds help to pay for important services in Canadian communities.

The propane industry’s value to the economy will continue to grow. Driven by a move towards lower-carbon fuels – such as propane – as well as technological and infrastructure advances, propane is an increasingly attractive energy choice.

 

Propane Prices

The Canadian Propane Association does not monitor or provide an analysis of propane prices. If you have specific questions regarding charges for your propane supply and/or service, please contact your propane supplier directly.

Visit our FAQs page for more information on propane prices.

For an overview of the main factors that affect propane prices, view our Propane Prices fact sheet.