US: Global outlier in propane export market
August 30, 2018 By Clara Richter
Understanding the ebb and flow of propane exports is vital for propane retailers.
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Understanding the ebb and flow of propane exports is vital for propane retailers.
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In July, U.S. propane exports kicked into higher gear.
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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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