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MOSCOW (MRC) -- US propane and
propylene stocks fell 300,000 barrels (bbl) in the week ended 20 November to
92.6 million bbl, according to Chemweek with reference to the US Energy
Information Administration's (EIA) statement Wednesday.
Nationwide
stocks were down 0.4% on the week and were 4.2% above year-ago levels of 88.3
million bbl.
A 900,000 bbl build in the PADD 1 (East Coast) region, to 9
million bbl, partially offset declines in all other PADDs. PADD 3 (Gulf Coast)
fell 400,000 bbl to 51.8 million bbl, PADD 2 (Midwest) dropped 600,000 bbl to
25.8 million bbl and PADDs 4 and 5 slid 300,000 bbl to 6.0 million
bbl.
Exports of propane and propylene increased 99,000 b/d to 1.323
million bbl, while imports rose 24,000 b/d to 152,000 b/d.
Demand, as
suggested by product supplied, fell 299,000 b/d to 1.171 million b/d. Refiner
and blender net production of propane and propylene rose 15,000 b/d to 2.295
million b/d.
Following the report's release, bids and offers for Mont
Belvieu TET (Lone Star) and non-TET (Enterprise) were both 54.375–54.75
cents/gal. That is not far off identical ranges of 54.5–54.75 cents/gal each
grade traded ahead of the data.
Conway was last talked at 52.5–53
cents/gal, vs. a pre-EIA range of 52–52.75 cents/gal.
As MRC wrote before,
Enterprise Products Partners LP (EPP), through one of its affiliates, has
entered a long-term agreement with Marubeni Corp. of Japan, under which Marubeni
will offtake polymer-grade propylene (PGP) produced from a second (PDH 2) plant
currently under construction at EPP’s operations in Mont Belvieu, Tex., for
supply to global customers. Concluded on June 16, the PGP offtake agreement is
part of a long-term collaboration between EPP and Marubeni that also includes
the export of liquefied ethylene, the first 25-million lb vessel of which loaded
and sailed from EPP and Navigator Holdings Ltd.’s 50-50 joint venture marine
terminal at Morgan’s Point, Tex., in early January, EPP and Marubeni said on
June 30.
We remind that in July, 2020, Enterprise Products conducted
maintenance at its propane dehydrogenation (PDH) unit in Mont Belvieu,
Texas. This PDH unit has the capacity of 750,000 mt/y of
propylene.
Propylene is the main feedstock for the production of
polypropylene (PP).
According to MRC's ScanPlast report,
PP shipments to the Russian market reached 880,130 tonnes in the nine months of
2020 (calculated using the formula: production minus exports plus imports,
excluding producers' inventories as of 1 January, 2020). Supply increased
exclusively of PP random copolymer. |
