Weekly Market Features

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India

Stronger Indian imports in 2024 could continue with additional terminal capacity – Week 42 2024

Oct 21, 2024

Indian imports have surpassed NGLStrategy’s expectations for 2024 with quarterly LPG imports in Q3 2024 expected to be 5.5 mm t – 1 mm t higher than seen in Q3 2023. To support the higher imports, there has been a number of new terminal projects added, with additional capacity still expected going forward [...]

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Middle East

What impact will the new gas projects in the Middle East have on LPG exports? – Week 41 2024

Oct 14, 2024

We are on the cusp of a number of new gas projects starting up in the Middle East over the next few years. Despite some delays to the timing of new production, by 2030, the significant volume of natural gas and hence LPG is forecast to have a substantial impact on Eastern supply [...]

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Terminals

What are the limitations of USGC LPG export terminal capacity in 2025? – Week 40 2024

Oct 07, 2024

A key focus for the global LPG market in 2025 will be the limitations on USGC export terminal capacity and volume, as current infrastructure reached capacity in Q3-24. The crucial question is how much more LPG volume can be exported based on current and projected capacity to relieve pressure on the domestic U.S. NGL markets, especially as production continues to grow, demand remains relatively flat, and inventories approach record highs [...]

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Saudi Arabia

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LPG production from Saudi Arabia to rise in 2025 – Week 39 2024

Sep 30, 2024

Some headlines last week mentioned Saudi Arabia could be looking at raising crude oil production over the next 6 months, dropping the $100 crude oil price target, looking at higher market share [...]

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Tariffs

2025 Middle East export forecast insufficient to meet growing propane demand in China – Week 38 2024

Sep 23, 2024

With the upcoming US election, the last time we saw one of the candidates in the presidential role, there were tariffs in place which added additional costs onto the price of importing LPG from the US to China. As a consequence, volume directly from the US to China decreased to almost zero with higher volume from the Middle East and other regions [...]

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Petrochemicals

Steam-cracking favorability has fallen – what does this mean for seaborne demand for the remainder of 2024? – Week 37 2024

Sep 16, 2024

The propane-naphtha spread has significantly narrowed in the last week or so, brought on by the decline in crude oil prices after market sentiment appeared more bearish going forward into 2025, ahead of the scale back in voluntary production cuts in the Middle East post Q4 2024. Both propane and naphtha prices subsided, but naphtha fell at a greater pace than propane [...]

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PDH

PDH operating rates in China – Week 36 2024

Sep 09, 2024

Seven new PDH plants have started in China in 2024 so far with the potential for one more to begin before the end of the year. Most recently, last month Zhenhua Petrochemical’s new PDH plant achieved on spec propylene production adding to the current overcapacity seen in China at the moment [...]

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Pricing

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Propane prices vs LNG in the East – Week 35 2024

Sep 02, 2024

The price of LPG in the East vs LNG prices on a comparable mmbtu basis, has narrowed throughout the summer and as of late has shown an advantage over LNG [...]

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Supply Chain

USGC terminalling fees Impact on Export Supply Chain Econs – Week 32 2024

Aug 12, 2024

The recent hike of the USGC terminalling fees, has highlighted the export terminal capacity limitations, a challenge further exacerbated by recent weather impacts. This development also reaffirms that terminalling fees will remain a critical element in the supply value chain from the USGC to the Far East in the following months [...]

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Terminals

USGC terminal capacity under further pressure towards 2025 – Week 31 2024

Aug 05, 2024

The latest announcement from EPD has pushed back EHT terminal expansion by the end of 2026 (larger capacity) and brought forward the NRT terminal phase 1 completion [...]

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China

Chinese retail demand vs petrochemicals – Week 30 2024

Jul 29, 2024

Imports of LPG into China have continued to rise through 2024 reaching over 3.3 mm t in June 2024 – a similar level seen in 2023. The difference however is that back at the end of Q2 2023, inventory levels in China were on the rise, whereas in 2024, the increased levels of imports can be attributed to higher demand, not only inventory [...]

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Weather

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The effect of hurricane Beryl on USGC LPG exports – Week 29 2024

Jul 22, 2024

Hurricane Beryl struck the US Gulf Coast on Monday, July 8th, as a Category 1 storm, a significant downgrade from its Category 5 strength in the Caribbean. [...]

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