LP Gas, October 2018

LP GAS SUPPLIERS GUIDE FOR YOUR SUPPLY NEEDS Dont forget to reference the LP Gas Propane Suppliers Guide anytime of the year for a list of propane suppliers that provide product to the nations retailers Visit lpgasmagazine com click on Archives and scroll down to Suppliers Guide If you would like to be included in the next Suppliers Guide email brichesson@ northcoastmedia net PADD 1A New England PADD 1B Central Atlantic PADD 1 East Coast PADD 1 East Coast PADD 2 Midwest PADD 3 Gulf Coast PADD FOCUS New projects PADDS 1B 1C 2 MarkWest Liberty NGL Pipeline LLC a subsidiary of MPLX LP launched a binding open season to solicit commitments from potential shippers for a new pipeline The company plans to construct the pipeline to serve the growing needs of Appalachian producers Once complete the pipeline will provide transportation services of natural gas liquids including propane normal butane isobutane pentanes and higher molecular weight hydrocarbons These products will come from natural gas processing plants in West Virginia and Pennsylvania and will be transported to fractionation facilities in Ohio and Pennsylvania the company says The binding open season for the pipeline closes Oct 12 PADD 1C Lower Atlantic PADD 3 Cogent Midstream will expand its natural gas processing capacity in the lower Midland Basin of West Texas the company says Cogent will construct a new refrigerated cryogenic processing plant at the same location as its current Big Lake Plant in Reagan County Texas The Big Lake II Plant will have the capacity to process an additional 200 million cu ft per day MMcf d and will serve growing natural gas production from the Wolfcamp formation The Big Lake II Plant is expected to come into service in the fourth quarter of 2019 and will bring Cogents total processing capacity to about 510 MMcf d The high efficiency UOP Russell plant is capable of high recovery rates for natural gas liquids including ethane and propane PADDS 2 3 A lack of storage availability was depressing propane prices in Conway and supporting prices in Mont Belvieu in early September according to Cost Management Solutions The issue is too much Y grade or unfractionated natural gas liquids taking up space that would normally be available for purity products such as propane In the Midwest there is too much product and not enough outlets Producers would rather move their product out of the region as Y grade and have it fractionated on the Gulf Coast Thus there is too much product looking for transportation or storage availability that cant be found leading to depressed prices in Conway about 29 cents below Belvieus price The Gulf Coast is the opposite of the Midwest It has plenty of demand from both petrochemicals and exports Too much Y grade and not enough fractionated or purity product is keeping a premium on what purity product is available PADD 3 Construction is underway to increase loading capacity for LP gas at the Enterprise Hydrocarbon Terminal by 175000 barrels per day bpd or about 5 million barrels per month Enterprise Products Partners announced The expansion will bring total LP gas export capacity at the terminal to 720000 bpd or about 21 million barrels per month Upon the companys completion of the expansion project the Enterprise terminal will have the capability to load as many as six very large gas carrier VLGC vessels simultaneously while maintaining the option to switch between propane and butane loadings Once operational the expansion will allow the terminal to load a single VLGC in less than 24 hours creating greater efficiencies and cost savings for customers the company says The incremental capacity is expected to be available in the second half of 2019 Enterprise also began construction of a new natural gas liquids fractionator adjacent to its Mont Belvieu Texas complex the company reported The new unit will have a nameplate capacity of 150000 bpd giving Enterprise 905000 bpd of fractionation capability in the Mont Belvieu area and about 14 million bpd companywide The fractionator is scheduled to begin service in the first quarter of 2020 LPGasmagazine com October 2018 LPGas 21 ISTOCK COM NORDRODEN CATSCANDOTCOM PASHAIGNATOV AKRAIN PHOTO COURTESY OF MPLX LP TOP RIGHT WESTMOR TOP