AFPM '12: Alberta sees propane supplies rising in province

02 April 2012 22:23  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--The Canadian province of Alberta is sitting on rising amounts of propane because former customers in the US are increasingly relying on domestic suppliers, the executive director of a planning and industrial group said on Monday.

In 2010, Alberta shipped 10m tonnes to the US, said Neil Shelly, executive director for Alberta's Industrial Heartland Association (AIHA).

The AIHA is a non-profit planning and industrial group that includes participation of local governments within the province.

Shelly made his comments on the sidelines of the International Petrochemical Conference (IPC), held by the American Fuel & Petrochemical Manufacturers (AFPM).

Rising US production of shale gas has also increased production of propane in that country, Shelly said. As a result, Alberta's US customers are increasingly relying on domestic suppliers.

At the same time, rising oil-sands production in Alberta could further increase propane supplies.

Oil-sand upgraders produce natural gas liquids (NGLs) and olefins in addition to synthetic crude.

The extra propane could be used as a feedstock for propylene via propane dehydrogenation (PDH).

A recent study identified propylene derivatives as among the most attractive petrochemical investments in Alberta.

Those derivatives would include polypropylene (PP), propylene glycol (PG) and derivatives of propylene oxide (PO), according to the study, which was prepared by IHS Chemical Consulting.

Other high-ranking investments include ammonia, urea and methanol; and polyethylene (PE); ethylene glycol (EG) and derivatives of ethylene oxide (EO).

The IPC lasts through Tuesday.

By: Al Greenwood
+1 713 525 2645

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