PADD Focus: LPG on the move
June 8, 2018 By LP Gas
Mariner East 1 pipeline came back online and propane exports to Asian countries were on the rise in 2017.
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Mariner East 1 pipeline came back online and propane exports to Asian countries were on the rise in 2017.
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U.S. propane production is much higher than domestic propane demand, leaving propane exports to play the role of balancing U.S. supply with demand.
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Change has been in the works for several years now as the U.S. propane market has become a net exporter of propane.
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A report from the U.S. Energy Information Administration (EIA) examines U.S. propane’s relationship with world propane prices and crude oil prices.
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There have been two primary factors behind the late-winter weakness in propane prices: rising propane production and lower propane exports.
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The increase in U.S. propane exports and export capacity has captured the industry’s attention for the last several years.
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It is difficult to believe, but domestic propane demand is running slightly below last year’s levels for the same time of year.
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From soaring U.S. propane exports during part of the heating season to extreme weather later in the year, 2017 in the propane industry didn’t lack for action.
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According to the U.S. Energy Information Administration, propane exports reached a record high of 913,000 barrels per day in the first half of 2017.
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It’s important for propane retailers to know the latest trends that could impact their access to propane and their ability to serve the domestic market.
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