Propane, Butane Prices Fall At Both Hubs

The week of March 30, natural gas liquid (NGL) prices were a mixed bag at both Conway and Mont Belvieu for the second straight week as propane and butane prices continued to tumble due to a lack of seasonal demand.

The Mont Belvieu price for propane was down 1% to $1.37 and the Conway price was down slightly to $1.29. Both prices were the lowest at their respective hubs in a month. Propane prices are likely to remain stagnant for the next few weeks as heating demand continues to fall across the country.

Demand for butane is also falling across the country as refiners continue to switch from winter-grade gasoline, which uses butane, to summer-grade gasoline. However, higher prices for crude oil and heavy NGLs helped to push up the price at both hubs. The price at both hubs fell 2% with the Mont Belvieu price down to $1.87 and the Conway price down to $1.74. Both were the lowest prices since the week of August 27, 2008.

The biggest price increase at either hub the week of March 30 was for Conway isobutane, which was up 5% and is benefitting from its use as a partial component in summer-grade gasoline as well as a close relationship to crude prices. The price of $2.02 was the highest it has been at the hub since the week of February 16 when it was $2.04. The Mont Belvieu price rose very slightly to $1.99, its highest price since it was $2.07 the week of July 30, 2008.

Ethane prices continued to perform well the week of March 30, as the price rose 3% at both Mont Belvieu and Conway. The Mont Belvieu price of 74¢ was the highest at the hub since the week of February 10, 2010, when it was 75¢ while the Conway price of 56¢ was the highest price since it was 57¢ the week of March 3, 2010.

Pentanes-plus (C₅₊) maintained the highest price at both hubs, although price gains were minimal the week of March 30. Both the Mont Belvieu and Conway price rose 1% from the previous week. The $2.47 price posted at Mont Belvieu was the highest at the hub since it was $2.50 a month ago while the $2.43 price posted at Conway was the highest at the hub since it was $2.53 four weeks prior.