Ethane supplies have overwhelmed demand in recent years, which has resulted in the industry diverting volumes to other parts of the country. The midstream is finally closing in on a long-term solution for the problem.
Shell told employees March 20 at its Sarnia refinery in Ontario, Canada, that the company has decided to halt any investment in LNG plants for North American vehicles, off-road engines or marine bunkers.
With a step that surprised analysts and moved investors in early February, Boardwalk Pipeline Partners announced a slash to its quarterly distribution a full 81% from $2.13 per unit to 10 cents per unit. And in turn, the market’s response was swift: Unit prices plummeted 46%.