Mont Belvieu, TX: Center of the propane universe

If you’re one of the 60m Americans who use propane every day for space heating, water heating, cooking, or power generation then it’s very likely the same propane you’re using spent some time in a place called Mont Belvieu, TX.

Center of the Universe

Mont Belvieu, TX is the center of the propane universe. Almost all the propane storage in the US is located in enormous, (and uncharted) salt caverns that naturally occur beneath the surface. No one actually knows how big that storage is, but rest assured it is big. Real big.

The Gold Standard of Propane Pricing

So when energy exploration companies process their natural gas and strip out the propane and butane, it usually ends up right here. Which is why you’ll find that many propane delivery contracts use Mont Belvieu propane pricing as their basis- the same way crude oil is priced using West Texas Intermediate (WTI) or Brent Crude.

It Powers Tankfarm Too

It’s also happens to be the basis for Tankfarm member pricing. We use a weekly published Mont Belvieu price as the baseline, and we then add our dealer margins on top of that price. That means the price can go up, or go down on a weekly basis- but it is always tied to the wholesale. That allows us to provide individual small users with the same pricing systems as some of the largest commercial buyers of propane.

How Big Is It?

Will Mont Belvieu ever run out of space? We’re not sure, but so far it’s been able to handle the liquid gas revolution in the United States as we’ve gradually become one of the largest energy producers in the world.

So next time you turn on your stove, fire up your grill, or light up your propane fireplace remember where your propane came from- a tiny little Texas town, with some Texas sized caves located right underneath it.