NGL MARKET RECAP
| April 30, 2014
April 30, 2014
In Focus: Bluegrass, ATEX and new ethane ships As plans for domestic pipeline infrastructure continue to change, Northeast storage capacity could be challenged and regional ethane recovery could surprise to the downside. At the same time, with new multi-purpose LNG ships announced to target the ethane/ethylene trade, we have more confidence in additional U.S. ethane exports. The announcement this week that the 400 kb/d Bluegrass pipeline has been taken off the project shelf supports incr.....
NGL MARKET RECAP
| April 23, 2014
April 23, 2014
In Focus: Ethane exports The announcement today from Enterprise that it intends to move forward with an ethane export terminal isn’t too much of a surprise – the partnership has been touting the fundamental length in the product for some time, and has indicated it would pursue such a project given sufficient commercial interest. The question remains, however, whether Enterprise has received firm commitments from international petrochemical producers. To make this a really credible investment.....
NGL MARKET RECAP
| April 16, 2014
April 16, 2014
In Focus: Market Insight (and expanded charts) In addition to record liquefied petroleum gas ( LPG ) exports, if recently-announced condensate splitters go ahead as planned, the US will also have excess light naphtha to export. Both of these products compete as feedstock for petrochemical production. But because of propane’s greater seasonality and its use for on-purpose propylene (propane dehydrogenation or PDH ), increased paraffinic naphtha availability shouldn’t necessarily be viewed as.....
NGL MARKET RECAP
| April 09, 2014
April 9, 2014
There will be no commentary today ahead of a Market Insight to be published ahead of next week’s report.
NGL MARKET RECAP
| April 02, 2014
April 2, 2014
In Focus: monthly EIA stat highlights Although U.S. NGL production for January 2014 was below the record set last September, as gas and oil production recovers from freeze-offs and as construction/expansion projects are completed in the Bakken and Marcellus/Utica, we would expect production to have topped 2.7 mb/d in February or March, and expect to surpass the 3.0 mb/d mark before the end of 1Q15.
NGL MARKET RECAP
| March 26, 2014
March 26, 2014
In Focus: Persistent weakness Although the spike in propane prices and relative strength in butane in January lent support to the NGL fractionation spread, shocks in the NG cash market and NGL market fundamentals quickly dispelled the hope of stronger earnings for producers. Although we argued for the possibility of some volatility in ethane this year should supply/demand factors align accordingly, 2014 is looking a lot like 2013 so far.
NGL MARKET RECAP
| March 19, 2014
March 19, 2014
In Focus: Ethane update At their investor day yesterday, Enterprise Products Partners continued to build excitement around the possibility of more ethane exports beyond what Ineos has already signed up to take from the Marcellus. Fundamentally, we are of the opinion that ethane exports tied to long-term international petrochemical contracts will have a limited impact on US balances, and believe the product’s other market – as fuel in the natural gas stream – may play a more defining role in th.....
NGL MARKET RECAP
| March 12, 2014
March 12, 2014
Propane: US propane inventories fell by -1.1m bbl to 26.1m bbl for the week ended March 7, 2014. PADD 3 inventories decreased by -1%, or -114k bbl, to 15.5m bbl. PADD 2 stocks decreased by -11%, or -922k bbl, to 7.6m bbl. In PADD 1, stocks rose by +3% or +64k bbl to 2.0m bbl. Implied demand increased +4% to 1.32 mb/d; imports fell by -20% to 212 kb/d and production fell -8% to 1.32 mb/d last week.
NGL MARKET RECAP
| March 05, 2014
March 5, 2014
In Focus: West coast LPG exports Crude oil and NGL marketer Petrogas will acquire Chevron’s LPG storage and loading facility in Ferndale, WA, eyeing LPG exports to Asia-Pacific. But few details about the project have emerged, and we would expect business as usual – with perhaps incrementally greater butane exports this summer – until the new owners are able to fully leverage their new asset. The facility has been given a capacity of 30 kb/d.
NGL MARKET RECAP
| February 26, 2014
February 26, 2014
In Focus: Propane markets We think it may be a few months before the excitement surrounding the heating fuel and petrochemical feedstock dissipates. Although the weather has been warmer, forecasts for the end of February and March as a whole are significantly colder than normal, suggesting recent declines in prices at both Conway and Mont Belvieu may be more short lived. A couple of surprisingly large draws could once again challenge deliverability and distribution, putting upward pressure on .....