LPG Surplus Rears its Head

Hellenic Shipping News: The end-winter transition from draws to builds in U.S. propane stocks is arriving early, according to ESAI Energy’s newly published Global NGL One Year Outlook. As ESAI Energy describes, the global LPG market will remain in surplus in 2019, resulting in stock builds, wide propane and butane discounts to naphtha. The implications range from the negative impact on petchem demand for naphtha in Asia and Europe to the likelihood of propane and butane stranded in the Gulf Coast pricing into the U.S. petchem feed slate.