The U.S. and Canada will produce about 3 million barrels per day (MMbbl/d) of LPG this year, a 200,000 bbl/d increase over 2017, with ESAI Energy LLC expecting considerable growth in 2019.
All told, output should rise by about 400,000 bbl/d from 2017 to 2019, said Andrew Reed, principal of ESAI Energy, during an Aug. 15 webinar. Of that 3 million bbl/d of production, exports of 1.1 million bbl/d are split between the Atlantic Basin and Asian markets.
Growth in LPG supply is opening up a world of selling opportunities for U.S. exporters, who are now challenging for market share in areas traditionally dominated by Mideast producers, Reed said. That means shipping to old markets like China, Japan, South Korea and Taiwan, but also to new markets in Southeast Asia like Indonesia.