Tag Archives: LPG

More fully laden LPG tankers gather off Singapore awaiting buyers | Reuters

Tankers full of liquefied petroleum gas (LPG) are gathering off Singapore waiting for buyers as a flood of supply from the U.S. and Saudi Arabia has outpaced demand for the fuel, trade and industry sources said on Thursday.The number of ships congregating near Singapore, a key ship-fueling and oil product trading area for Asia, has surged to over 10 from under seven just five weeks ago, said trading and industry sources that are familiar with the market. Shipping data carried on Thomson Reuters Eikon shows that there are at least eight Very Large Gas Carriers (VLGCs) anchored near Singapore including the Chaparral, Ming Long, Promise, Cratis, British Commerce and Berge Nantong.LPG was once a tightly supplied market with petrochemical manufacturers competing for the fuel with its main residential and commercial consumers that use it for heating and cooking. Now, the market for the fuel is in a dire state following new supply pouring in from the United States.”There could be as many as 11 floaters being anchored off Singapore waters at the moment. The growth in supplies was too fast,” said consultant Ong Han Wee of energy consulting firm FGE.U.S. exports for arrival in Asia this month could be about 750,000 tonnes, data from FGE showed. In June, they hit a record of about 1 million tonnes, FGE said.At the same time, Saudi Arabian exports for August arrival to Asia will rise to 840,000 tonnes, the highest monthly volume this year, said Ong.The surge in supply coincides with tapering demand in China, whose petrochemical plants have driven much of the demand growth for LPG in the region. LPG imports to China slumped to 408,350 tonnes in July, down 17.8 percent from June, customs data showed.

Source: More fully laden LPG tankers gather off Singapore awaiting buyers | Reuters

Enterprise Products Partners buys control of Oiltanking Partners

Houston-based pipeline giant Enterprise Products Partners LP NYSE: EPD has bought controlling ownership of a major oil storage and terminal business in a nearly $4.6 billion deal as part of a larger acquisition process.Enterprise Products will have about 66 percent of Houston-based Oiltanking Partners LP NYSE: OILT and full ownership of its general partner from Oiltanking Holding America Inc., which is a subsidiary of Germany-based oil and gas storage provider Oiltanking GmbH.The deal includes $2.21 billion in cash, $2.2 billion in newly issued EPD units and $228 million in cash for notes receivables and interest on Oiltanking notes payable and credit facility.Enterprise CEO Michael Creel said the completed deal is the first step of a two-part process for the “merger of Oiltanking Partners into Enterprise” to help expand its liquefied petroleum gas export business near Houston. Enterprise is rapidly expanding within the Houston region.Creel said Enterprise plans to acquire the remaining publicly held partner interests in Oiltanking in a roughly $1.4 billion deal, making the two-part process a $6 billion transaction.

via Enterprise Products Partners buys control of Oiltanking Partners – Houston Business Journal.

ICAP, Gasteam America LP to form alliance focusing on LPG operations | Reuters

ICAP Energy and Gasteam America LP plan to announce on Thursday that they have formed a strategic business alliance to complement their respective liquified petroleum gas LPG operations, according to a news release obtained by Reuters.The agreement will allow Gasteam, a physical brokerage and international marketing and consulting firm, to benefit from ICAP Energy’s futures and derivatives expertise and infrastructure.ICAP Energy, the energy business of ICAP plc, will gain access to the international LPG markets by working with Gasteam’s futures and swaps clients, said the release, which has not yet been made public.Houston-based Gasteam is a participant in the growing export market for U.S. propane and other LPGs.

via ICAP, Gasteam America LP to form alliance focusing on LPG operations | Reuters.

Fuel Fix » US to become top exporter of liquefied petroleum gas, experts say

HOUSTON — The U.S. is poised to become the top exporter of liquefied petroleum gas — more commonly known as propane or butane — within just a few years, officials with research analyst IHS said Monday.

By the 2020s, the U.S. likely will displace top LPG exporters including Qatar and the United Arab Emirates, said IHS Senior Director Walt Hart, during the IHS International LPG Seminar in Houston. The domestic supply of propane and butane is on the rise, produced along with the booming output of U.S. shale gas. But the domestic market for propane and butane is relatively flat, several experts said.

via Fuel Fix » US to become top exporter of liquefied petroleum gas, experts say.