Opinion

Is Europe ready for Mariner East?

Posted by OilVoice Press - OilVoice

21-Jun-2018


As the Mariner East expansion stumbles toward completion, it is timely to examine how ready Europe is to absorb more U.S. propane.  The Mariner East expansion will enable the U.S. to triple seaborne exports of LPG from Marcus Hook to 115,000 b/d. The ability to export more product from the U.S. East Coast places the European market more firmly in the sights of U.S. exporters.

The U.S. has established itself as the marginal supplier to Europe. The chart below shows the strong relationship between changes in U.S. propane exports to Europe and Europe's overall propane deficit. For example, when Europe's propane deficit falling by 35,000 b/d from 2016 to 2017, U.S. propane deliveries to Europe fell by roughly the same amount, from 130,000 b/d to 90,000 b/d.

Europe's petchem use of propane, swings in residential/commercial use, and North Sea production are the main drivers of changes in Europe's propane deficit. Aside from dynamics affecting the European balance, the ability of U.S. exporters to place propane in Europe depends on developments affecting exports from Europe's traditional suppliers – Algeria, Russia and other Africa/FSU exporters.

In ESAI Energy's newest market update, we examine how developments in Europe and nearby markets shape the outlook for U.S. propane deliveries to Europe. Complicating the outlook for Europe's petchem feed slate is the flow of U.S. ethane to Europe, which will also increase following the Mariner East expansion. The potential for Europe's steam crackers to absorb more propane and butane is no longer a simple matter of competition between LPG and naphtha.

ESAI Energy's Global NGL Outlook provides monthly updates of the trends and outlook for global LPG fundamentals, with granular propane and butane data and forecasts.

ESAI EnergyeuropeUnited States2017 Oil industry PredictionsPropaneMariner EastLPGLiquified Petroleum Gas

More items from oilvoice


Gazprom: TurkStream Gas Pipeline’s Offshore Section Completed

Today, the Pioneering Spirit pipelaying vessel completed the construction of the offshore section of the  TurkStream  gas pipeline in the Black Sea. Pioneering Spirit pipelaying vessel Enlarged photo (JPG, 4.5 MB) The command to weld the final joint of the gas pipeline's second string ...

OilVoice Press - OilVoice


Posted 18 hours agoPress > GazprompipelineOffshore +3

NPD: Production Figures October 2018

Preliminary production figures for October 2018 show an average daily production of 1 874 000 barrels of oil, NGL and condensate, which is an increase of 271 000 barrels per day compared to September. Total gas sales were 10.6 billion Sm 3 (GSm 3 ), which is an increase of 1.6 GSM 3 from the pr ...

OilVoice Press - OilVoice


Posted 18 hours agoPress > NPDProduction FiguresProduction +2

Equinor is Ready to Invest in Tropical Forest Protection

  Equinor wants to help develop a robust market for private sector, ensuring responsible environmental and social protection of tropical forest. (Photo: Isabella Jusková on Unsplash) Equinor is ready to invest in the protection of tropical forest as soon as a well functioning ...

OilVoice Press - OilVoice


Posted 18 hours agoPress > EquinorEquinor Energy

TMK Announces 3Q and 9M 2018 IFRS Results

PAO TMK (“TMK” or “the Group”), one of the world's leading producers of tubular products for the oil and gas industry, today announces its interim consolidated IFRS financial results for the third quarter of 2018 and nine months ended September 30, 2018. 3Q and 9M 2018 Highlights Financial ...

OilVoice Press - OilVoice


Posted 1 day agoPress > TMKEarningsResults +2

PetroTal Announces Increased Production from Bretaña Field and Provides Operations Update

PetroTal Corp. (“ PetroTal ” or the “ Company ”) (TSX-V: TAL) is pleased to announce that it has successfully increased oil production from theBretaña Norte discovery well (the “Discovery Well” or the “Well”) at the Bretaña field in Block 95, Peru.  The Company is also pleased to provide a further ...

OilVoice Press - OilVoice


Posted 1 day agoPress > PetroTalProductionTSX-V +3
All posts from oilvoice