Is Europe ready for Mariner East?

Posted by OilVoice Press - OilVoice


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

Permian Region Natural Gas Prices Fall as Production Continues to Grow

Source: U.S. Energy Information Administration, based on Natural Gas Intelligence The natural gas spot price spread between the Permian Basin, as priced at the Waha Hub in western Texas, and the U.S. national benchmark Henry Hub in Louisiana has grown considerably in the past year. Natural gas ...

OilVoice Press - OilVoice

Posted 8 hours agoOpinion > EIAEnergy Information Administration EIAUnited States +7

Baker Hughes, a GE company Reaches Agreement to Sell Natural Gas Solutions Business

LONDON & HOUSTON--(BUSINESS WIRE)--Jul. 18, 2018-- Baker Hughes, a GE company (NYSE: BHGE) today announced an agreement to sell its Natural Gas Solutions (NGS) business to two separate entities, First Reserveand Pietro Fiorentini S.p.A., for a combined value of $375 million. NGS is part of BHGE's T ...

OilVoice Press - OilVoice

Posted 9 hours agoPress > Baker HughesGEDivestment +6

RGU Pilots Intern Programme With Industry Drilling Partners

Robert Gordon University (RGU) has been working with partners in the drilling industry to create a summer intern programme which will help strengthen ties and develop the future workforce. RGU's Oil and Gas Institute and Employability & Professional Enrichment Hub have developed the programme for ...

OilVoice Press - OilVoice

Posted 9 hours agoPress > DrillinginternshipRGU +2

M2 Subsea Secures Contract With Premier Oil

Global independent provider of ROV services, M 2 Subsea, has secured a contract to provide inspection services for Premier Oil's Balmoral Floating Production Vessel (FPV). M 2 Subsea, which has bases in Aberdeen and Houston, will carry out the 2018 inspection of the vessel's hull, flowlines, umb ...

OilVoice Press - OilVoice

Posted 9 hours agoPress > M2 SubseaM 2 SubseaSubsea +5

SDRL - Seadrill Partners West Leo Early Termination Litigation Update

Hamilton, Bermuda, July 18, 2018 - Seadrill Limited ("SDRL or the Company") announces today that a subsidiary of Seadrill Partners, the Master Limited Partnership it established in 2012 and in which it holds approximately a 46.6% interest in, has received approximately $248 million relating to th ...

OilVoice Press - OilVoice

Posted 9 hours agoPress > SDRLSeadrillWest Leo +1
All posts from oilvoice