Petrochemical companies backing away from propane
June 12, 2017 By Mark Rachal and Dale Delay
Propane inventory has increased 10.774 million barrels since its first build for this year, which occurred during the week ending April 21.
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Propane inventory has increased 10.774 million barrels since its first build for this year, which occurred during the week ending April 21.
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The U.S. remained the world’s top producer of petroleum and natural gas hydrocarbons for the past five years, the Energy Information Administration reports.
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Last week, the Energy Information Administration reported U.S. propane inventory increased 3.446 million barrels.
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Increased propane production levels and U.S. export demand tied to decreased domestic demand have put the topic of propane supply at the forefront of many retailers’ minds.
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There was a little less nervousness last week after the EIA’s weekly inventory data finally showed a significant build in U.S. propane inventory.
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Aging housing units with old appliances offer residential opportunities for propane marketers.
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Propane prices have been falling since mid-April as weakening export economics worry traders.
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Honeywell UOP commissioned operations at the largest single-train propane dehydrogenation unit in China at Yantai Wanhua Polyurethanes Group.
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The way last winter ended helps to form the foundation for Mike Sloan’s propane market outlook, which he presented at the NPGA Propane Expo.
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Nearly 80 percent of U.S. propane production came from natural gas processing last year. Natural gas production is the engine that drives natural gas supply.
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