Viewpoint: Canadian propane exports set to rise in 2022
Propane exports out of Canada are expected to rise in 2022 and upcoming years as more export capacity is expected to come online.
Growth in Canada's west coast export capacity will be lead by expansions by AltaGas and Pembina at their current terminals. At least 30,000 b/d of additional capacity, combined with growing petrochemical demand, is expected in 2022. Another 30,000 b/d of export capacity is possible within the next few years.
AltaGas plans to expand its Ridley Island (Ripet) propane export terminal in British Columbia to 80,000 b/d in the upcoming years. AltaGas started propane exports through Ripet in May 2019 at 40,000 b/d and increased exports to 58,000 b/d during the third quarter of 2021. AltaGas also exports up to 50,000 b/d of propane and butane via the Ferndale terminal in Washington state.
Pembina is considering an expansion of its 25,000 b/d Prince Rupert export terminal in BC to 45,000 b/d. The company expects to make a final investment decision in the first quarter of 2022.
At the same time, the start up of a new propane dehydrogenation (PDH) unit will bolster domestic demand. Inter Pipeline (IPL) is making progress on construction of its 525,000 t/yr Heartland Petrochemical Complex (HPC) in Alberta, which is on track to start operations in the second quarter of 2022. The Heartland facility will consume 22,000 b/d of propane at the new PDH unit and derivative units to produce 525,000 t/y of polypropylene.
Railed propane exports to the US are expected to remain steady or decrease slightly as higher prices in Asian markets might draw more barrels for seaborne exports. Canada's railed and seaborne propane exports rose this year with railed propane exports to the US averaging 126,000 b/d in January-October compared with 100,000 b/d in January-October of 2020. About 40,000 b/d are shipments to the US west coast with majority being re-exported to Asia via the Ferndale terminal.
Expectations for an increase in demand comes as propane production in Alberta continues to grow with natural gas output, supported by higher commodity prices. Propane production in Alberta averaged 179,000 b/d in January-October 2021 compared with 163,000 b/d during the same period in 2020. Production is expected to continue to grow in 2022 as producers set higher output targets for next year.
Related news posts
'World first' electric cracking plant starts in Germany
'World first' electric cracking plant starts in Germany
London, 17 April (Argus) — Chemical companies BASF, Sabic and Linde have started two electrically-heated steam cracking furnaces at BASF's Verbund site in Ludwigshafen, Germany, the world's first demonstration of the technology beyond pilot scale. The demonstration plant is fully integrated into the existing crackers at Ludwigshafen and will produce propylene, ethylene and potentially heavier olefins, according to a statement from the companies. It is designed to test the continuous operation of electric furnaces and collect data to support further development. The furnaces each employ a different electrical heating technology. By using renewable electricity instead of conventional fuels, the companies estimate it can reduce CO2 emissions by 90pc. The two furnaces will process roughly 4 t/hour of hydrocarbon feedstock and consume 6MWh of energy. The companies first announced their collaboration in 2021 , with BASF and Sabic contributing their expertise in operating steam crackers and Linde providing its intellectual property and expertise in steam cracking furnace technologies. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australian petchem firm Qenos enters administration
Australian petchem firm Qenos enters administration
Singapore, 17 April (Argus) — Australian olefins and polyethylene (PE) producer Qenos has entered into voluntary administration following a cash liquidity crunch. Australian advisory firm McGrathNicol has been appointed as voluntary administrators, with its first meeting with creditors, including employees, expected to be held on 30 April. A follow-up meeting will be held for the administrators to present the results of their investigation into the Qenos Group and offer recommendations. Qenos was formerly a joint venture between China's state-controlled ChemChina and US private equity group Blackstone. Qenos' new owner LAOP BidCo will provide funding to the voluntary administrators, employee wages and other necessary costs to shut the Botany plant in New South Wales. Qenos was "unable to confirm whether there will be sufficient assets available to meet employees' pre-appointment claims", in a circular released to employees. Qenos operates a 250,000 t/yr ethane cracker, a 90,000 t/yr low-density PE plant and a 130,000 t/yr linear low-density PE/high-density PE (HDPE) swing plant at Botany. Qenos stopped its ethylene and PE production at Botany in February 2023 after damage to a cooling water tower at its olefins complex. Qenos earlier planned to restart its Botany ethylene and PE plants in phases from late January this year but this failed to materialise. It separately in 2021 closed and mothballed one of its two ethylene units and one of its two 100,000 t/yr HDPE units in Altona, Victoria. This came after the closure of ExxonMobil's 90,000 b/d Altona refinery in August 2021 that supplied feedstock to Qenos' Altona cracker. No decision has been made on Qenos' ethylene and PE plant in Altona. Qenos' distribution arm eXsource will continue to operate normally. It supplies a range of polymers manufactured by Qenos, Bluestar, LyondellBasell and others within the domestic Australian market. By Yee Ying Ang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore's MPA, IEA unite on maritime decarbonisation
Singapore's MPA, IEA unite on maritime decarbonisation
Singapore, 17 April (Argus) — The Maritime and Port Authority of Singapore (MPA) and the IEA have signed an initial deal to push the transition to zero and near zero emission fuels, while working on technology as well as digitalisation to meet the maritime decarbonisation agenda. The agreement, signed by MPA chief executive Teo Eng Dih and IEA executive director Faith Birol, was announced at the Singapore Maritime Week 2024 (SMW) this week. "Greater international collaboration in maritime and energy industries is critical for international shipping to meet international decarbonisation goals," Teo said. "Shipping is one of the hardest sectors to decarbonise and we need to spur development and deployment of new technologies to slow and then reverse the rise in its emissions," said IEA chief economist Tim Gould. "This will require strong collaboration at a national and international level." Training programmes will be built to support the adoption of new fuels. There will also be partnerships made towards fuel-related projects and initiatives such as the International Maritime Organisation-Singapore NextGen project. The IEA plans to open its first regional co-operation centre in Singapore, which will be its first regional office outside of its headquarters in Paris, France. By Mahua Chakravarty Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Idemitsu builds stake in refiner Fuji Oil
Japan’s Idemitsu builds stake in refiner Fuji Oil
Tokyo, 17 April (Argus) — Idemitsu has agreed to buy an additional stake in fellow Japanese refiner Fuji Oil from domestic power producer Jera, adding to their existing partnership. Idemitsu on 16 April said it will buy Jera's entire 8.75pc share of Fuji, raising its stake to 21.79pc, for ¥2.5bn ($16.2mn). It is unclear when the companies will complete the deal. Jera declined to disclose the reasons for selling its stake. Idemitsu in March also bought domestic petrochemical producer Sumitomo Chemical's stake in Fuji to boost its share to 13.04pc from 6.58pc, becoming its main shareholder. It aims to further optimise fuel oil production and sales including refinery operations, while promoting decarbonisaton of its businesses. Idemitsu is enhancing its partnership with Fuji in the face of shrinking domestic oil and petrochemical demand and growing consumption in overseas, especially in southeast Asia. Idemitsu owns the 190,000 b/d Chiba refinery in the Keiyo industrial complex in east Japan's Chiba prefecture where Fuji operates the 143,000 b/d Sodegaura refinery. Their refineries are connected to Sumitomo Chemical's Chiba plant. Idemitsu's refineries also include the 150,000 b/d Hokkaido in the northernmost prefecture of Hokkaido, the 160,000 b/d Aichi in Aichi prefecture in central Japan and the 255,000 b/d Yokkaichi in Mie prefecture in the country's west. Idemitsu's subsidiary Toa Oil operates the 70,000 b/d Kawasaki refinery in east Japan's Kanagawa prefecture. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more