U.S. hits record propane consumption in January

U.S. propane consumption surged to 1.48 million barrels per day (b/d) in January 2025, marking the highest January usage since 2005 and the most for any month since February 2007, according to data released by the U.S. Energy Information Administration (EIA).

The sharp increase in demand was driven by a colder-than-usual January--the coldest month in over a decade. Heating degree days (HDDs), a measure of cold weather, totaled 946 in January—just 26 fewer than in January 2014, the coldest month in recent history. Propane is heavily used for residential heating in the U.S., particularly during winter months, making its usage highly sensitive to temperature fluctuations.

As frigid temperatures gripped much of the country, propane demand spiked, leading to a notable drawdown in U.S. propane inventories. Stockpiles fell by approximately 22 million barrels in January—the steepest monthly decline since January 2017. The draw came despite a strong starting point: propane inventories entering the winter heating season stood at 98 million barrels, well above the five-year average.

The Midwest, which accounts for about one-third of the estimated 6.6 million U.S. households using propane for primary heating, experienced particularly tight market conditions. After beginning the season at the top of the 10-year inventory range, Midwest propane levels fell to their lowest in over a decade.

Higher demand and shrinking inventories also pushed propane prices slightly upward, leading to increased residential heating costs. The region’s heavy reliance on propane—where 83% of consumption goes toward space heating—made it especially vulnerable to market tightening.

Despite these challenges, record U.S. propane production at natural gas processing plants helped offset some pressure, allowing for both increased domestic consumption and continued growth in exports. U.S. propane exports have risen for 17 consecutive years, fueled by growing global demand for propane as a petrochemical feedstock.