AFPM ’14: Texas ethylene unlikely to surge after pipeline restart

30 March 2014 18:13  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--US Texas ethylene is expected to experience a small price increase, while Louisiana ethylene falls significantly, once the Evangeline Pipeline is restarted, sources said on the sidelines of the International Petrochemical Conference (IPC) on Sunday.

Market sources said they could see Texas-based Williams System ethylene gaining 2-3 cents/lb ($44-66/tonne) once the Evangeline Pipeline is restored, owing to stronger demand for material in Louisiana.

However, Louisiana-based Choctaw System ethylene will then likely fall 10-12 cents/lb, owing to a surge in supply.

Currently, sources said the spread between the two systems is 15-16 cents/lb, well above the typical spread of 2-3 cents/lb.

Sources said the Texas price will likely push down more on Louisiana prices because production costs continue to soften and demand will be steady to slightly higher.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC runs through 1 April in San Antonio.

By: John Dietrich

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