2021 Propane Outlook

May 19, 2021
The most recent winter brought average temperatures but saw higher demand for propane because Asia had a cold snap during the La Niña weather cycle last year. As a result, the demand from Asian countries for U.S.-supplied LP increased, with more than half of America’s propane suddenly getting a passport to places like Japan, China, and South Korea.
LP gas is a necessary ingredient in propylene production, the building block of the plastic, polypropylene, and East Asia manufactures most of the world’s supply of propylene. Polypropylene is a critical component in many items of personal protective gear, automotive interiors, and packaging. China’s plastics exports jumped 15% in 2020. But a tell-tale came in the country’s exports in November. Year-over-year plastics exports jumped an alarming 44%. The demand for U.S. propane took yet another hit.
“Rely On Us” is not only our motto; it is what drives us. We go to great lengths to ensure we have two major components in place for our customers - supply and service.
Ample Storage
United Cooperative proudly invests millions of working capital to increase local propane storage capacity and purchases propane months before our customers need it. Locally, United Cooperative has almost one million gallons of local storage. Along with our partnership with CHS, one of the largest wholesale propane suppliers in the U.S., allows us to have ample propane supply in the event of propane shortages, like those that have occurred in years past.
Quality Service
Service and safety are important to us and are some things discount suppliers just can’t provide. We have technicians all over Wisconsin to keep your system operational and are available 24/7 in case of emergencies. If you do encounter a propane emergency at your home, farm, or business, we urge you to call us, day or night, at 1-800-924-2991.
United Cooperative is a branded Cenex® propane dealer. Our team provides quality propane that’s clean, efficient, reliable, and affordable; safe service; and delivery that’s far more dependable than our competitors.
Price protection is another part of what we do for you, our valued member-owner. As a propane consumer, you can contract your propane needs each year to protect against winter price spikes. Nine out of 10 years shows that locking in your propane price during the summer can save you money during the winter. With summer just around the corner, now is the time to plan your propane supply for next winter’s heating needs. United Cooperative offers several contracting options:
  • Budget plan: Lock in a fixed price and spread your payments for the propane you use for home heating into manageable, equal monthly amounts.
  • Booking plan: Lock in a fixed price and pay for your propane fuel as it is delivered.
  • Pre-paid plan: Lock in a fixed price for the season and pay for your propane upfront.
  • EZ Gas: No commitment, pay upfront, and self-budget for your propane needs.
When contracts get sent out in early summer, give us a call with any questions about your contract options to better help you keep you and your family warm with propane and take the guesswork out of annual home and business heating costs. Get up to 10¢ off per gallon when you receive a fill-up between June and August during our Summer Fill program and start the heating season with a fuller tank.
You can “Rely On Us” for propane supply and service needs.

Bill Herbst

Vice President - Energy


David Cramer

Filed Under: Corporate NewsEnergyHome HeatPropane