Despite cold temperatures and heavy snow in parts of the country, NGL prices largely fell at both Mont Belvieu and Conway the first week of March as the propane supply shortage from earlier this year has since caught up with demand.
The American Petroleum Institute welcomed authorization by the Department of Energy of liquefied natural gas (LNG) exports from Cameron Parish, Louisiana and urged the agency to quickly process over 20 remaining applications.
The frigid temperatures that closed out January cleared out in different parts of the country, but large amounts of snow throughout the Northeast the first week of February were a sure sign that winter isn’t over yet.
Natural gas liquids (NGL) prices were stable the week of January 8 while natural gas prices retreated at a quicker pace following the return of normal winter temperatures after a sustained cold front to start 2014.
The Polar Vortex that hit much of the Lower 48 states the first full week of 2014 caused an incredible spike in natural gas spot prices with some markets such as the city of New York ramping up to $70 per million Btu.
The one big positive for NGLs last week was the sharp price increase for propane at both hubs as demand from multiple markets soared to their highest prices in 2013. Liquefied petroleum gas export demand triggered the increase.
The E-P mix continues to struggle at Conway as rejection levels are increasing at a rapid pace in the Midcontinent. Thus there has been very low volatility at the hub and the price was the lowest at the hub this year