U.S. inventories of propane and propylene reached 97.7 million barrels as of Sep 11, a top turn in a 22 years that EIA has collected weekly propane register statistics. In a initial 6 months of 2015, U.S. propane and propylene inventories were 24.3 million barrels aloft on normal compared to a same duration in 2014. In a past year, scarcely all of a boost in inventories occurred in a Gulf Coast segment (PADD3).
As prolongation of propane and other hydrocarbon gas liquids (HGL) has grown, a ability to transport, store, and trade these line has expanded. During a initial 6 months of 2015, prolongation of propane during healthy gas plants was 31.3 million barrels, or 172,000 barrels per day (b/d), aloft than during a initial half of 2014. Exports augmenting by 33.3 million barrels (182,000 b/d) over a same period.
In a United States, propane is especially used for space heating and as a feedstock for petrochemical plants, as good as for drying rural crops. Relatively tiny amounts of propane are also used for fueling vehicles. Its heating and rural uses make propane expenditure rarely anniversary and continue dependent, rising in a tumble and peaking in a winter. In further to heating and rural use, propane is used by petrochemical plants to furnish ethylene and propylene, pivotal building blocks for a prolongation of chemicals and plastics. Petrochemical propane expenditure has small seasonality though can change significantly formed on plant operations.
Traditionally, propane and propylene bonds boost from a start of Apr to a finish of September, and they are drawn down from Oct to March, when rural and heating final increase. In 2015, inventories began augmenting in mid-February, some-more than 6 weeks progressing than a chronological average.
With domestic expenditure comparatively flat, flourishing propane prolongation during healthy gas estimate plants contributed to this year’s clever register build, while also provision some-more propane to a tellurian marketplace around exports. Propane is constructed during healthy gas estimate plants or during petroleum refineries. Expanding shale gas and parsimonious oil expansion continues to be a categorical motorist of propane prolongation growth, with refinery propane prolongation remaining comparatively constant. The healthy gas plant share of annual prolongation rose from 62% in 2008 to 76% in 2014.
EIA’s Sep Short-Term Energy Outlook (STEO) expects propane and propylene inventories to start a Oct heating deteriorate during record levels, reaching a high of 99.1 million barrels during a finish of September. STEO anticipates stronger than normal register draws commencement in a fourth entertain of 2015, as gas plant prolongation slows and exports continue to expand. Natural gas plant prolongation of propane, that reached a monthly high of 1.13 million b/d in April, is foresee to diminution somewhat in a initial entertain of 2016 before rising to 1.19 million b/d by a fourth quarter. STEO projects that net exports, that reached a monthly high of 518,000 b/d in April, are projected to continue increasing, reaching 702,000 b/d in a fourth entertain of 2016 as trade comforts continue to enhance and ride costs to trade markets diminution with a rising series of tankers and a opening of a widened Panama Canal.
Beginning Oct 7, EIA will resume a anniversary Heating Oil and Propane Update news of sell and indiscriminate propane prices. Last year, a information collection was stretched to embody propane information for 38 states and heating oil information for 22 states.