26 March 2013 15:19 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--The US should have sufficient propane to supply both export terminals and new on-purpose propylene plants as long as producers continue to target gas reserves that are rich in natural gas liquids (NGLs), an executive with Enterprise Products said on Tuesday.
US exploration and production (E&P) companies have been concentrating on such plays because natural gas prices are so low. The resulting NGLs have made it profitable for producers to continue drilling. ?xml:namespace>
Meanwhile, that propane could have a lot of uses in the future.
Companies have announced plans to build up to eight propane dehydrogenation (PDH) plants.
In addition, companies are expanding their capacity to export propane.
Enterprise is expanding its exporting capacity, and it has plans to build up to two PDH plants.
The first plant is sold out, and customer reception is very good for the second, said Jerry Cardillo, senior vice president for petrochemicals and marine for Enterprise Products.
He made his comments on the sidelines of the International Petrochemical Conference (IPC), held by the American Fuel & Petrochemical Manufacturers (AFPM).
As long as E&P firms continue targeting liquids-rich plays, there should be enough propane for exporters and for propylene producers, Cardillo said.
The AFPM conference lasts through Tuesday.
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