The NGL market is experiencing a down period this summer as infrastructure outages, construction delays and cool weather have combined to make this a lost season.
As July draws to a close, ethane prices remain in free fall with major headwinds working against them, primarily in the form of plant outages that have severely reduced domestic cracking capacity.
Ethane prices had been expected to begin their long-awaited improvement this summer, but that progress appears to be getting stunted once again.
Ethane prices had the largest decrease the first full week of July as it remains closely related to gas prices, which tumbled this week. Ethane was also hurt by the continued outage of several crackers undergoing expansions or maintenance.
As the summer of 2014 draws to a close, NGL prices continued to return to levels from last summer with the only real discrepancies being higher Conway propane prices and lower Mont Belvieu isobutane prices this year.
As we enter August, the winter of 2014 is a distant memory along with the gas shortages and high prices that it brought with it. The first week of August 2014 looks an awful lot like the same time last year with one key difference: even worse NGL prices and improved gas prices. It’s the worst of both worlds for NGL producers as frac spread margins are now worse off than a year ago.
Just as Global Partners LP gained approval to unload more oil from rail cars at a marine terminal in Oregon, Tesoro Corp. learned its plans for a similar project in neighboring Washington will have to wait.
TexStar Midstream Logistics Pipeline LP launched a 30-day open season on Aug. 18 for commitments from interested parties for service on the new TexStar East Texas Pipeline.
Dakota Plains Holdings Inc. and Hiland Crude LLC executed an interconnection agreement to link Dakota Plains’ Pioneer Rail Terminal in New Town, N.D., with Hiland’s Market Center Gathering System crude oil pipeline network.
White Cliffs Pipeline LLC (WCPL), a partially owned subsidiary of Rose Rock Midstream, announced open seasons on its existing pipeline capacity and on a new pipeline the company is considering from the Denver-Julesburg Basin to the Cushing, Okla., pipeline hub.
Key North American Hub Prices: August 20, 2014
AltaGas Ltd. and Painted Pony Petroleum Ltd. signed definitive agreements to enter a 15-year strategic alliance for the development of processing infrastructure and marketing services for natural gas and NGL, the companies announced Aug. 19.
Key North American Hub Prices: August 19, 2014
Key North American Hub Prices: August 18, 2014
EnLink Midstream Partners LP and EnLink Midstream LLC announced two new growth projects in the Permian Basin and south Louisiana, the companies said in a statement.
Pennsylvania-based The Linde Group added a petrochemical plant business unit to its engineering division offices in Houston, Texas.
According to the latest report from research and consulting firm GlobalData, Global polypropylene capacity increased at a compound annual growth rate (CAGR) of 5.2% from 2003 to reach 65 million tons per year (mtpy) in 2013.
Houston-based Westlake Chemical Partners LP, a limited partnership formed to operate, acquire and develop ethylene production facilities and related assets, launched its IPO of 11,250,000 common units representing limited partner interests.
Koch Industries Inc.’s subsidiary Flint Hills Resources LLC significantly expanded its chemicals business with the completion of its purchase of PetroLogistics LP and its general partner, PetroLogistics GP LLC.