Price spread between Mont Belvieu, Conway balloons
February 26, 2018 By Mark Rachal and Dale Delay
As the impacts of winter demand wane this time of year, it is not unusual to see Conway prices move toward the weak side.
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As the impacts of winter demand wane this time of year, it is not unusual to see Conway prices move toward the weak side.
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Cost Management Solutions’ Mark Rachal takes a look at propane’s relative value to crude and how it is trending compared with last year.
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It is now the homestretch for winter, but forecasts for a cold February mean there is much work still to be done.
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U.S. propane prices have returned to where they began the winter – in a price decline that has surprised many, given strong domestic demand support.
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Enterprise Products Partners will also expand its natural gas liquid extraction capabilities by an incremental 40,000 barrels per day (bpd) to 120,000 bpd.
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Energy consultant and researcher Anne Keller wields her “crystal ball” for NGL forecasting.
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Propane prices often go through a bit of a slump between the middle of October and the Thanksgiving holiday.
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Relative to West Texas Intermediate’s crude price, Mont Belvieu is valued at 76 percent, while Conway is valued at 73 percent.
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The expanded pipeline will have an initial capacity of 110,000 barrels per day. Two new pump stations and pipeline looping will increase the capacity to handle the volume.
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As winter approaches, the Midwest, like the rest of the nation, has propane inventory levels that are below the five-year average and well below last year’s.
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