US spot ethane prices soar to highest level since 2012

23 January 2014 17:31 Source:ICIS News

US spot ethane prices soar to highest price since 2012HOUSTON (ICIS)--US spot ethane prices at the Mont Belvieu hub in Texas spiked to their highest levels since May 2012 on Thursday.

US spot prices hit 43 cents/gal on Thursday because of short supplies, strong natural gas futures and logistical issues at the Conway hub in Kansas.

Severe winter weather has disrupted supply infrastructure at Conway.

Sources said supplies of ethane and other natural gas liquids (NGL) were trapped at the hub, which serves the US Midwest, as supply lines get reversed and open up.

Ethane prices topped 30 cents/gal only once in 2013, staying in the mid 20s cents/gal range for most of the year.

Ethane has more than doubled in price since January 2013, when spot prices were at 21.50 cents/gal, the lowest level for the year.

By Bobbie Clark