Alberta Wild Fire to have Limited Impact on Waterborne Naphtha Exports
As part of the fallout from the disruption of bitumen production in Alberta due to the Fort McMurray wild fire, Canada will require much less diluent from the U.S. The loss of at least 300,000 b/d of bitumen production that is not upgraded implies the elimination of nearly 100,000 b/d of diluent demand. This development will slow the 200,000 b/d flow of pentanes from the U.S. to Canada. A portion of this volume will absorbed by the U.S. market, including as light naphtha used as petrochemical feedstock, leaving a small amount of pentanes that can be exported to overseas petrochemical enterprises. The temporary availability of a small amount of additional light naphtha will be a welcome development for petro-chemical users in Asia and Europe. But by and large, the U.S. naphtha exports have failed to grow much.