Canadian Propane Association Applauds Border and Trade Security Initiative

OTTAWA, Feb. 4 /CNW/ - The Canadian Propane Association (CPA) applauds the actions of Prime Minister Harper and U.S. President Obama as they sign an agreement aimed at tightening continental security and improving the flow of trade. Canada supplies approximately 70% of all propane imported to the U.S. of which over 50% is transported by truck or rail.

The Prime Minister said, "Canada is the largest, the most secure, the most stable, and the friendliest supplier of all America's purchases: energy." This can also be said for America's propane imports.

Over the last five years, Canadian propane exports to the United States have accounted for roughly 60% of total Canadian propane production," said Jim Facette, President and CEO of the CPA. "Today's agreement will enhance the competitiveness of Canada's propane industry by improving the flow of trade."

Several studies, academic experts, industry stakeholders and governments have shown how businesses, and therefore consumers, pay a significant premium for regulatory and security controls at the border. This cost has been estimated to be as high as three per cent of the total value of imports and exports.

With a $10 billion dollar impact on the Canadian economy each year, Canada's propane industry supports the livelihood of over 20,000 Canadians while contributing over $900 million in annual taxes and royalties.

"Canadian Propane Association members understand the need to achieve a healthy balance between economic growth and security," added Mr. Facette. "They also believe that the proposed border and trade security initiative would improve border efficiency and therefore, further enhance trade between the two countries."

About the Canadian Propane Association
With over 400 members, the Canadian Propane Association (CPA) is the national voice of the Canadian propane industry, a multi-billion dollar industry that impacts the livelihood of tens of thousands of Canadians. The mission of the Association is to facilitate the growth and best practices of performance for the propane industry in Canada, by acting as a unified champion for the entire industry regardless of geography or place on the propane value chain. The CPA's vision is to be the respected voice of and destination for the propane industry in Canada, and to champion a safe propane industry.

Backgrounder - Canada's Propane Industry

Strong Contributor to Canada's Economy
Canada has a well-developed propane infrastructure, with tremendous capacity to produce an abundant supply with high portability via truck, rail and pipeline across Canada, and into the U.S.

  • In 2009, Canada produced approximately 11 billion litres of propane; 5.8 billion litres of which was exported to the U.S.
  • The other 5.2 billion litres was consumed within Canada, within every region, across many sectors, for a broad range of applications.
  • Over the last 5 years, Canadian propane exports to the U.S. have accounted for approximately 60% of total Canadian propane production
  • Government revenue from the industry was $911 million in 2008, through taxes & royalties.
  • Over 80% of Canada's supply was extracted from natural gas at hundreds of facilities across Canada; approximately 13% was refined from crude oil at 16 refineries, and less than 1% was imported.
  • With a $10 billion impact to Canada's economy, the propane industry supports the livelihood of over 20,000 Canadians.

A Cleaner Canadian Energy
Fewer air pollutants. Lower greenhouse gas emissions. Less carbon content. These are just some of the environmental advantages that propane has over conventional energy supplies in virtually every application, from heating and transportation, to cooking, power generation, and countless other uses.

  • Over 80% of Canada's propane is extracted from natural gas plants, making it among the cleanest in the world.
  • Propane is not only clean-burning and safe, but unlike most alternative energy sources, it is also widely available today.

A Small Carbon Footprint
With its small carbon footprint and high efficiency, propane can play an important role in reducing Greenhouse Gas (GHG) emissions without sacrificing economic prosperity or quality of life.

Recent international studies demonstrate the many ways propane is already helping cut the amount of GHG's going into our atmosphere:

  • Consumers who replace electricity with propane for home heating in North America lower the resulting GHG emissions by 54%.
  • Propane is the most efficient fuel for domestic water heating. When North Americans use propane technology to replace traditional electrical water tanks, they reduce the GHG emissions by 35%.
  • Not only does propane emit less than half the GHG emissions than coal-fired power plants - propane also outperforms diesel and natural gas fuelled generators as well.


For further information:

Jim Facette, President & CEO
Cell.: (613) 850-2669

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