Fractionators will keep US propane long despite exports: Liveris

24 October 2013 18:21  [Source: ICIS news]

HOUSTON (ICIS)--US propane should remain long because the new fractionators coming on line will outpace exports and other sources of new demand, the CEO of Dow Chemical said on Thursday.

Because of the advent of shale gas, several companies are expanding propane export terminals.

In addition, several companies, including Dow, plan to build propane dehydrogenation (PDH) units, which will use propane as a feedstock to produce on-purpose propylene.

However, shale gas is also encouraging companies to build more fractionators, which will add to the nation's supply of propane.

"At the end of the day it doesn't changed the direction as we see it, in terms of the market being long globally for as far as the eye can see," said CEO Andrew Liveris during an earnings conference call.

As such, propane prices will likely continue to follow those for oil, but at a lower ratio, he said.

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By: Al Greenwood
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