News
01/10/24
LPG World editorial: Think tanks
LPG storage capacity continues to expand as the latest LPG World survey grows to
more than 1,300 facilities across the world London, 1 October (Argus) — China's
petrochemical expansion continues to be at the forefront of global investments
in new LPG storage capacity, although a shifting focus away from propane
dehydrogenation (PDH) to cracking and more interest in exploiting ethane is
altering the make-up of such projects. The number of Chinese storage facilities
in the latest Global LPG Storage Survey 2024 rises to 130 from 126 in 2023,
while capacity reaches about 6.7mn t, up from close to 5.9mn t. The two most
significant contributions come from new terminals in east and northeast China.
Befar New Material's import facility in Binzhou, Shandong province, and Hengli
Petrochemical's Dalian terminal in Liaoning province. Both are capable of
storing 160,000t of LPG — 80,000t of propane and butane apiece — and will be
used to support their petrochemical units, as well as providing them with more
opportunity to sell domestically. The refreshed storage survey exclusive to LPG
World is the first to include ethane-specific terminals — as well as breaking
down the large North American natural gas liquid (NGL) storage caverns into
approximate capacities for LPG and ethane based on regional upstream yields.
China is again playing the most prominent part in trying to seize growing
volumes of cheap US ethane for its petrochemical sector through the development
of new infrastructure across the supply chain, including ships. As a result, the
survey includes Satellite Chemical's Lianyungang terminal in Jiangsu, which can
store 320,000t of ethane, as well as Huatai Shengfu's facility in Ningbo,
Zhejiang, which can accommodate 80,000t — both can also accept newly built very
large ethane carriers (VLECs). And China is also dominant in the survey's first
ever devoted section to the most significant storage projects, being home to
five of the 10 developments included. A trio of new LPG terminals in Guangdong
province in south China will each add 120,000t of capacity, while a new 50,000t
unit will open in Qingdao, Shandong, all of which are due to open next year (see
table). The Global LPG Storage Survey aims to provide the most comprehensive
collection of larger LPG storage facilities currently available. With this in
mind, those collecting and verifying the data have again expanded its scope,
this time to more than 1,300 units with a combined capacity of 73.5mn t, up from
under 1,300 and 68.9mn t last year, and from 1,120 plants in the previous survey
in 2022. The latest survey also captures three new Indian facilities, one of
which opened in 2024 and the other two are expected to open over the next few
years. The first, now established, storage capacity is found at LPG trading firm
Petredec's new 1.4mn t/yr Krishnapatnam import terminal on India's east coast,
which opened in April. The terminal has two storage tanks that can store about
17,600t and 18,200t of propane and butane, respectively. The terminal has
received nearly 60,000t of LPG since opening — 23,000t from Saudi Arabia on
board the Al Maryah on 1 April and then 34,600t from Kuwait on board the Delma
on 12 August, Kpler data show. Vote of confidence VLGC owner BW LPG and Indian
LPG distributor Confidence Petroleum's joint import terminal project in
Jawaharlal Nehru on the west coast of India is added to the project list. The
terminal will be able to store 62,000t of LPG and discharge VLGCs when it opens,
and while the project is still in its early stages, a prospective start-up of
2026 has been given. And Indian gas company Gail is developing the country's
first PDH plant in Usar, around 40km from the Jawaharlal Nehru terminal. This
project includes 60,000t of storage capacity to service the new plant, which is
due to start up in 2025. Brazil's LPG imports are also on an upward trajectory,
prompting it to invest in new terminal capacity. Should its Suape project see
the light of day, another 71,000t of storage will be added. Send comments and
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