LPG Market to Rebalance

The end is in sight for the run on global LPG stocks, according to ESAI Energy's recently published Global LPG One-Year Outlook. In 2018, the geographically widespread growth of LPG production from fractionation will gradually begin to pull the market out of deficit. Year-on-year declines in global LPG stocks have continued into the fourth quarter of this year, driving up propane and butane's prices relative to naphtha. These price shifts have priced some petrochemical demand for LPG, including propane use for PDH units, out of the market.

The Global LPG One-Year Outlook describes how growth of LPG supply from fractionation will accelerate, bringing supply and demand back into alignment. Iran's South Pars, Qatar's Barzan, and Australia's LNG projects will contribute to growth next year. In 2017, global supply from fractionation increased by only 60,000 b/d. Supported by widespread growth outside North America, supply from fractionation will grow 300,000 b/d next year. As supply growth accelerates, bullish propane and butane prices will tame petrochemical demand. According to ESAI Energy's global LPG balance, the year-on-year declines in global LPG inventories will slow or come to a halt by the end of 2018.

“Outside North America, there have been no bright spots for LPG supply growth in 2017. Even South Pars, the one place outside North America where we anticipated new supply, failed to deliver,” explains Andrew Reed at ESAI Energy. “At the end of 2017 and in early 2018, new supply from South Pars and other projects will begin to have an impact. Between continued growth in North America and renewed growth elsewhere, the market will gradually rebalance.”

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site


ESAI EnergyLPGStocksProduction

More items from oilvoice

Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice

Posted 4 months agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice

Posted 8 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice

Posted 1 year agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice

Posted 1 year agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice

Posted 1 year agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice