Strong US LPG production and global demand growth is poised to balance global supply and demand, according to World Energy Consultants president Craig Whitley.
"We are nearing the point where we're going to balance this international market," Whitley said at the Argus Americas LPG Summit today in Houston, Texas. "We are beginning to see signs of that already now vis a vis the fact that Asia is importing a lot more product from the US."
Going forward, High PDH demand in Asia, combined with new world-scale petrochemical plants in the Middle East, will result in higher demand for US LPG by Asia buyers, he said. At the same time, US infrastructure growth left US production and exports unconstrained.
"It explains why we don't have the margins we had in the industry we did two or three years ago," he added.
The US is exporting approximately 25mn t/yr, he said, most of it to Asia.
