25 September 2013 22:56 [Source: ICIS news]
HOUSTON--US propane inventories rose by 1.7% week on week as consumption dipped by 8.1%, the US Energy Information Administration (EIA) said on Wednesday.
Inventories rose to 65.5m bbl for the week ending 20 September, up from 64.4m bbl the prior week.
Consumption fell to 1.150m bbl/day, down from 1.251m bbl/day.
As a result, propane spot prices fell to $1.03/gal, down from $1.1350/gal a week ago.
Propane exports rose to 227,000 bbl/day, up from 222,000 bbl/day the prior week.
The US has an abundance of propane as a result of relentless shale gas production.
The excess supplies have been finding a home in the form of exports, mostly to Mexico and South America.
But cargoes are starting to make their way to Asia, where propane is coveted for the production of propylene.
In fact, Enterprise Products Partners announced today it was expanding its propane export facility at the Houston Ship Channel to handle 9m bbl/month of propane.
Enterprise said the facility has performed above expectations and is expected to continue to do so as natural gas liquids (NGL) production from shale and propane demand as a feedstock continue to grow.
20-Sep 13-Sep 6-Sep 30-Aug Propane Stocks 65.5 64.4 64.5 64.6 m bbl Propane Consumption 1,150 1,328 1,328 1,244 bbl/d * * figures in thousand bbl
* figures in thousand bbl
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