January Cold Snap Drives U.S. Propane Consumption to Highest Level Since 2007: EIA

U.S. propane consumption hit a record high of 1.48 million barrels per day (b/d) during January 2025, according to an April 7 report published by the U.S. Energy Information Administration. Propane consumption during January 2025 was the highest monthly amount since February 2007 and the highest January consumption on record. The increase in propane consumption during January 2025 can be attributed to a cold snap which led to higher heating demand across the majority of the U.S.

U.S. propane usage is highly correlated with temperatures during the winter period, since propane is mainly utilized for space heating in the country. Moreover, January is usually the coldest month of the year and the agency reports that January 2025 was the coldest month on record since January 2014. January in the U.S. historically has 831 population weighted heating degree days (HDDs), which is a measure of heating demand, based on the previous 10 January’s. During January 2025 there were 946 HDDs, indicating a colder January compared to the monthly average.

U.S. propane stocks declined considerably during January, which also supported U.S. propane prices. Propane stocks remained above the previous five-year average for the majority of the storage injection period during 2024, which usually occurs during the from April to October period, followed thereafter by withdrawals from November to March. Propane stocks were in the 98 million barrels region heading into the winter season. During the below seasonal normal temperatures in January, propane stocks withdrew around 22 million barrels, the highest amount since January 2017. Propane stocks in the Midwest, the U.S. region with the highest propane demand for heating, were at their lowest level in over 10 years, having begun the winter heating period at the top of the ten-year range.

U.S. propane production has reached record high volumes and been a vital driver behind the increase in propane exports. U.S. propane production has risen significantly over the last decade, in line with increasing U.S. natural gas production. U.S. propane exports averaged 1.8 million b/d, a record high during 2024.