Propane Industry News

Albany, N.Y.-based Transparency Market Research has released a new report that forecasts the global natural gas liquid market is likely to grow at a compound annual growth rate of 7.16% between 2016 and 2024. According to the report, the global NGL market stood at 7982.63 kilo barrels/day (7,982,630 bbld) in 2015 and is expected to reach 14,806.59 kilo barrels/day (14,806,590 bbld) over the next eight years.

Williams (Tulsa) said March 23 it had started the second offgas liquids extraction plant to serve its Canadian midstream and petrochemical complex. The new plant boosts domestic production of petchem feedstocks and significantly reduces emissions in the oil sands production process while recovering valuable natural gas liquids and olefins.

If the U.S. prohibited hydraulic fracturing tomorrow the nation would lose massive amounts of jobs, investments, and domestic oil and gas reserves—both those proven today and others in the future, writes Paul Sullivan, professor of economics at the National Defense University and adjunct professor of security studies at Georgetown University. He adds that natural gas has been taking the place of coal in electricity production.

U.S. Gulf of Mexico crude oil production is estimated to increase to record high levels in 2017, even as oil prices remain low. The Energy Information Administration (EIA) projects Gulf production will average 1.63 MMbbld in 2016 and 1.79 MMbbld in 2017, reaching 1.91 MMbbld in December 2017. Gulf of Mexico production is expected to account for 18% and 21% of total forecast U.S. crude oil production in 2016 and 2017, respectively.

The Energy Information Administration (EIA) said March 9 that U.S. crude oil production in December 2015 continued to decline as production reached its lowest level since November 2014. Production also fell from year-ago levels for the first time in more than four years. This continued production decline is the result of lower crude prices, which has fallen more than 70% since the summer of 2014.

Spectra Energy Corp. (Houston) said April 4 its subsidiary, Westcoast Energy Inc., has entered into a definitive agreement to sell its ownership interests in Spectra Energy’s Canadian NGL business to Plains All American Pipeline LP (Houston) subsidiary Plains Midstream Canada ULC (PMC). A cash purchase price of about $150 million is reported, plus customary closing adjustments.

The Virgin Islands Water and Power Authority’s (WAPA) project to convert to propane as a primary source of fuel to generate electricity has achieved another milestone on Saint Croix. WAPA April 5 introduced propane to one of its retrofitted generating units as the conversion from fueloil to propane continues to take shape. WAPA and Vitol oversaw the commissioning of Unit 20.

Five years ago, Iran produced 3.5 million barrels of oil per day. Today, it produces only three-quarters of that amount, but with the end of sanctions against Iran, output should be boosted. Iran sits atop the world’s second-largest gas reserves and is a top-three producer, according to the U.S. Energy Information Administration. The country needs the gas for its own economy since two-thirds of its electricity is generated by burning it.

…The 2015 Sales of Odorized Propane Report survey materials have been mailed by the American Petroleum Institute (API). The due date for returning the survey is April 18. Each company will receive a personalized survey that includes a unique identifier. Materials are mailed in an API envelope that states, “Enclosed is your 2015 Sales of Propane Report. Those responding are reminded to return both pages of the survey form. All companies that complete the survey will receive a copy of the 2014 report this June.”…

The presence of an underground natural gas transmission pipeline does not affect the sales prices or value of residential properties, according to a new study, “Pipeline Impact to Property Value and Property Insurability,” conducted by Integra Realty Resources on behalf of the INGAA Foundation.

Environmental stewardship is just one reason Nestlé Waters North America is adding more than 150 medium-duty beverage delivery trucks fueled by propane autogas—but it’s a big motivation. Over the vehicles’ lifetime, the 155 Ford F-650 trucks will reduce carbon dioxide emissions by more than 24.6 million pounds. The new units are being deployed in April. Nestlé propane trucks make deliveries to customers across the country, including Los Angeles;

Bimbo Bakeries USA (Horsham, Pa.) is delivering its bread and baked goods in vehicles fueled by emissions-reducing, domestically produced propane autogas. The company’s 84 new Ford F-59 trucks, equipped with Roush CleanTech fuel technology, operate in three of the company’s major markets. “Bimbo Bakeries USA introduced propane autogas vehicles into our Chicago, Denver, and Washington, D.C.