St Fergus, Scotland gas plant outage to tighten Europe propane

15 November 2013 17:09 Source:ICIS News

LONDON (ICIS)--Production issues at the St Fergus gas processing plant in Scotland will increase tightness in the propane market and could push up prices, sources said on Friday.

Sources said repairing faults in gas-liquid separation modules at the Aberdeenshire plant would hamper production until the second week of December.

“We have probably lost 80,000-100,000 tonnes of propane. As this filters through we’ll see people being much more aggressive in terms of covering what they need in December,” said one shipbroker.

The propane supply to northwest Europe is already tight with improvements in the Asian market, arbitrage opportunities to Latin America and a strengthening market in the Mediterranean combining to limit large cargo imports.

By pushing up the value of large cargos, the unplanned outage could pull international shipments bound for the Mediterranean back into northwest Europe.

By Richard Welbirg