Q&A: Trigon bullish on Pacific coast LPG project

: LPG
24/08/06

Canada's Trigon Pacific Terminals, operator of the 18mn t/yr Prince Rupert coal terminal in British Columbia, announced late last year that it would repurpose part of the facility to LPG, with first exports planned for around 2028. This will make it the fourth LPG terminal operating in close proximity on the Canadian Pacific coast when it opens, joining midstream firm AltaGas' Ridley Island propane terminal and its Reef project, due to start up in 2026, as well as peer Pembina's Watson Island terminal. All aim to capitalise on growing domestic natural gas liquids (NGL) production and increasing demand from northeast Asian importers, attracted by the shorter sailing times compared with the US Gulf coast. Argus' Yulia Golub spoke with Trigon chief executive Rob Booker about the project:

Can you provide an update on the Trigon Pacific LPG project?

We have completed [early engineering and design] work and have submitted the project description to the port authority. We have been seeking the port authority's permission to handle LPG and to perform the necessary regulatory functions. We are very confident in our design work. If we were permitted to go today, we could start exports at the end of 2028 or early 2029. However, we have a civil litigation with the Prince Rupert Port Authority that we need to work through.

Trigon has faced challenges from the Prince Rupert Port Authority since announcing the project. Is this likely to delay permitting for the project?

We have been in civil litigation with the port authority over various issues for almost eight months now. Most of these issues are over document release [regarding time-limited exclusive rights for the export of LPG from Prince Rupert granted to AltaGas and Vopak]. We have been very proactive but it has been a very slow process. We will be back in court in September, and if it is not resolved by then, it is likely to end up in court again in early 2025. But we are excited about our project and confident in our legal case. We know the coast can support multiple terminals for LPG export growth.

Will the terminal be able to handle VLGCs?

Yes, the second berth is designed to handle VLGCs, and the first berth is already handling VLGCs and can handle larger vessels if required. The berth is designed to hold four liquid arms and can handle different liquids. For example, one arm can handle LPG, another ammonia, and other liquids such as biofuels and biodiesel. In Japan, some vessels are designed to carry split cargoes, both LPG and ammonia. The planned design has a capacity of between 1.8mn t/yr and 2.4mn t/yr, depending on the product. The berth can handle around 9mn t/yr of liquids, so the smaller number is the first step in the LPG plan.

To export LPG from Canada, firms must obtain an export licence from the Canada Energy Regulator. Are you in the process of obtaining such a licence?

We are interested in providing the service of unloading railcars, storing the product, and loading ships. So, shippers will obtain the LPG licence. It's likely we will apply for and receive one as well, but we are still working through those dynamics with potential partners. Some partners have expressed their interest and clearly want to export their own LPG, and they would be responsible for getting an export licence.

Canada faces a possible rail strike from 12 August. Are you expecting this to impact rail shipments to ports?

A CN [Canadian National Railway] rail strike would impact all commodities. The labour relations board is going to rule on whether some goods are deemed essential and some are not. It's hard to predict and will be interesting to see how that goes. The railways would have a 30-day cooling period after that. If granted, it could allow the negotiations to prevail and a settlement to be reached. If the strike happens, the Port of Prince Rupert will be affected. Businesses and their customers would be directly impacted. Historically, these have never been long outages in Canada, but we are not very quick to recover either. When you lose several days of operations, it takes a long time to recover because we don't have much spare capacity in the rail system. If we are moving a certain number of trains before the strike, we will move the same number after the strike. We are not going to magically increase the number of railcars we can move.

LPG exports are increasing from AltaGas' Ridley Island propane terminal and its adjacent Reef project will add further capacity, while Pembina is reconsidering expanding its Watson Island terminal. Are you concerned about rail congestion once you begin LPG exports?

No, because I think this rail line is underutilised today. In 2020, the Port of Prince Rupert was exporting 30mn tof goods, but today we are only exporting 22mn t. So, the port has suffered a significant loss of volume in the past few years. We would be lucky if this year is not another year when volumes decline, or if we are lucky, we may stay at the same level as 2023.

What is driving the decline in exports from Prince Rupert?

It's a combination of fewer container exports and fewer coal exports. The declines have been offset by a recovery in LPG and grain exports, but not enough to offset the total losses. Frankly, we have not been competitive as a port. In the same timeframe of 4-5 years, exports from the Port of Vancouver have gone from 132mn t/yr to 145mn t/yr. It's not that the volumes are not there, it's the competitive nature of things and other influencing factors. But speaking of rail capacity, even at 30mn t of exports out of Prince Rupert, the CN rail line is underutilised. The issue isn't rail capacity — I think the rail has a lot of capacity. CN is very adept at meeting growing volumes as required. And in 2030, we will have to stop coal exports, resulting in a lot of lost volume and extra capacity to move other products. One reason LPG is moving so well right now is because of a downturn on the container side.

Canada's Pacific coast LPG terminals

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25/04/02

Q&A: LGE still pushing EU for RLG concessions

London, 2 April (Argus) — European LPG association Liquid Gas Europe (LGE) continues to push to secure EU and member state support for renewable liquid gases (RLG) such as bioLPG and renewable DME (rDME) while protecting customers of LPG and autogas from policies intended to transition away from fossil fuels. Argus' Dafydd ab Iago and Matt Scotland spoke to LGE general manager Ewa Abramiuk-Lete: What is the EU's latest position on CO2-neutral fuels in road transport? The European Commission's 2023 regulation proposes a framework for registering vehicles after 2035 that operate solely on CO2-neutral fuels in accordance with EU law and climate neutrality objectives. Since then, the commission has been tasked with developing a definition of what CO2-neutral fuels are, but no official information has been released yet. Meanwhile, as part of the broader fuels industry, we've collaborated in a technical group to formulate a definition that encompasses all renewable fuels in line with the EU's renewable energy directive [RED III]. The group's report frequently makes reference to renewable LPG and DME. But will the commission consider anything other than e-fuels? Certain EU commissioners and commission president Ursula von der Leyen have emphasised the need for technological neutrality when revising CO2 standards for cars. The devil is in the details. At this point, there is talk, but we've yet to see any concrete proposals or indications from the commission. We are closely monitoring the current developments in the commission, primarily to determine whether the concept of technological neutrality is being practically implemented and if there is potential for more than just e-fuels and hydrogen. But the push for this concept should originate from member states. Failing to broaden the scope would be a missed opportunity to support a broader range of cost-effective, immediately deployable renewable solutions like RLGs and rDME. When could we find out what fuels are included? A decision may come later this year. Any initiative to reopen or amend EU legislation must come from the commission. Recent intense discussions in the European Parliament about the state of the automotive sector, as well as growing pressure from member states, could be enough to persuade the commission to act. What has been the reaction to the EU's clean industrial deal and state aid rules? We are still reviewing the new state aid proposals. At first glance, RLGs seem to be included. The commission indicates that all fuels compliant with [RED III] — such as bioLPG, biomethane and rDME — are eligible for support. Fossil fuels are generally excluded, with limited exceptions for natural gas under strict conditions. The justification for this is that natural gas is deemed cleaner than more polluting alternatives — an argument that equally applies to LPG. In which direction is the EU discussion on energy taxation heading? The European Council is still finalising the energy taxation directive. The matter lies with EU member states, which must vote unanimously on energy taxation. Progress is being made slowly. The current Polish Presidency of the Council of the EU will need to determine the next steps on critical issues before a consensus can be reached. For LPG, what is at stake is whether RLGs are fairly treated under the new tax framework — and whether the directive allows for differentiation between renewable and conventional fuels, and between business and non-business uses. How will the energy performance of buildings directive (EPBD) affect LPG? A lot is quite technical, but also vital for the sector. One key issue is the inconsistent implementation of the EPBD across EU member states. Guidance documents provide definitions of what constitutes a fossil fuel boiler, which is essential as several member states are preparing to phase out such boilers between 2035 and 2040. A significant question [is whether there will be] recognition of renewable-ready or renewable-compatible boilers, particularly those using bioLPG or rDME. We are analysing how member states are interpreting and implementing these provisions. In Italy, there is strong support for the continued use of bioLPG in heating, but this level of recognition varies significantly between member states. What is the latest on the EU's proposed restrictions on PFAS ? The European Chemicals Agency is conducting a socio-economic assessment as part of the EU's proposed restriction on PFAS under Reach, covering many industrial uses. In the LPG sector, PFAS — particularly fluoropolymers such as PTFE — play a critical role in cylinders, tanks and valves. These materials are essential for preventing leaks in systems that store and transport flammable gases. Some alternatives are being tested — including PFAS-free sealing techniques used by certain companies in Spain — but they are not yet widely adopted or validated across the EU. Promising developments are being made but require further testing to meet safety standards. Your recent RLG Outlook models European RLG output reaching 27.4mn t/yr by 2050 under the policy conditions. Is that not too optimistic given limited progress in the past two years and the dissolution of rDME joint venture Dimeta? While the dissolution of Dimeta was a setback, it does not change the long-term outlook for rDME. Our 2050 modelling shows that Europe could produce up to 27.4mn t/yr of renewable LPG equivalent, of which up to 40pc could come from rDME. The industry continues to see strong potential in rDME, and essential work is progressing on technical standardisation, and safety and blending rules. Our analysis also indicates that sustainable feedstocks are sufficient to fulfil this production potential. Out of 22 production pathways, we examined nine in detail based on a multi-criteria analysis. Only two are fully commercialised at present. This is why we are advocating for co-ordinated policy action — to accelerate commercialisation and mitigate investment risks. Will rDME be a core focus at LGE's Congress in Katowice over 20-22 May? RDME will be one of many key topics at the congress. The event will take place in Poland, drawing strong participation from central and eastern European markets, as well as from further afield, with delegates expected from the US, South America, Africa, Australia and Asia. [LGE] plans to present the RLG Outlook and explore opportunities for scaling up RLG production. In addition, sessions will focus on the role of LPG in agriculture, transport and heating — all critical sectors for the energy transition. Central Europe and Poland will be a core point of discussion, given its significant autogas market and ongoing energy security challenges. We will also address the impact of Russian sanctions on the Polish LPG market, with high-level representatives from the Polish presidency and industry ministry in attendance. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico GDP outlook falls again in March survey

25/04/01

Mexico GDP outlook falls again in March survey

Mexico City, 1 April (Argus) — Private-sector analysts lowered Mexico's 2025 GDP growth forecast to 0.5pc in the central bank's March survey, down by more than a third from the prior forecast, driven by increased concerns over US trade policy and weakening domestic investment. The latest outlook is down from 0.8pc estimated in February and marks the largest of four consecutive reductions in the median forecast for 2025 GDP growth in the central bank's monthly surveys since December. Mexico's economy decelerated in the fourth quarter of 2024 to an annualized rate of 0.5pc from 1.7pc the previous quarter, the slowest expansion since the first quarter of 2021, according to statistics agency data. Uncertainty over US trade policy has weighed on investment and contributed to the slowdown. Concerns have intensified in recent weeks with US president Donald Trump set to announce sweeping new tariffs on 2 April. Mexico is preparing its response, possibly including reciprocal tariffs, on 3 April. A key concern in Mexico is an expiring carveout to the tariffs for treaties aligned with US-Mexico-Canada (USMCA) free trade agreement rules of origin. Mexico's economy minister said last week ongoing negotiations aim to secure a "preferential tariff," including a continuance of that exclusion and lower tariffs for goods progressing toward USMCA compliance. The median 2026 GDP growth estimate fell to 1.6pc from 1.7pc in February. Analysts again cited security, governance and trade policy as top constraints to growth. Year-end 2025 inflation expectations edged lower to 3.70pc in March from 3.71pc in February. The central bank's board of governors cut Mexico's target interest rate by 50 basis points to 9pc from 9.5pc on 27 March, citing expectations that inflation will continue to slow toward the central bank's 3pc long-term goal and reach 3.3pc by year-end. The board said it would consider additional cuts of that size at future meetings. Mexico's consumer price index accelerated to an annual 3.77pc in February, as slower growth in agricultural prices was offset by faster inflation in services. The target interest rate is projected to fall to 8pc by year-end, compared with 8.25pc in February's survey. The median exchange rate forecast for end-2025 reflected expectations of the peso ending the year slightly stronger at Ps20.80 to the US dollar from Ps20.85/$1 estimated in the prior forecast. The end-2026 estimate firmed slightly to Ps21.30/$1 from Ps21.36/$1. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US propane prices remain firm as stocks fall again

25/04/01

US propane prices remain firm as stocks fall again

Inventories at a three-year low and strong demand for exports supported propane prices this month, writes Joseph Barbour Houston, 1 April (Argus) — US Gulf coast Mont Belvieu propane prices remained elevated relative to crude last month as domestic inventories declined to their lowest since 2022. Mont Belvieu LST propane prices averaged 54.3pc of Nymex WTI crude in March, up by 11.4 percentage points from a year earlierand 4.4 percentage points higher than the five-year March average. US propane stocks typically start to build from March as seasonal heating demand abates — the first stockbuild of the year took place in the second or third week of March in 2021-24, EIA data show. And support for prices from expectations of cold weather had largely subsided by early March, market participants said, with outlooks from the US' National Weather Service forecasting warmer than average weather for the first half of March. But US propane inventories fell for a 23rd consecutive week over the seven days to 21 March, dropping to 43.2mn bl (3.48mn t), their lowest since 29 April 2022, EIA data show. The latest stockdraw was largely because of stronger US exports, which offset weaker domestic demand. Propane exports averaged 1.91mn b/d (4.7mn t/month) in March, up from 1.83mn b/d in February, while domestic sales fell to 1.21mn b/d from 1.45mn b/d. Propane's value relative to crude reached a three-year high of 59.2pc by the end of February as strong heating demand tightened supply in the first half of the month and market participants appeared to cover short positions as it neared its end. Fading interest in prompt supply in March led prices to largely move in lockstep with crude until mid-month, but prices remained strong on tight supply and rose later in the month as buyers returned, peaking at 94.75¢/USG, or 57.6pc of Nymex WTI crude, on 24 March. As a result, propane will enter the summer off-season from its strongest quarter relative to crude in three years. US propane exports could remain high in April on strong petrochemical demand in China given rising production margins and delayed purchases from earlier uncertainty regarding US tariffs. But prices historically ease during the off-season and prompt Mont Belvieu backwardation suggests they could begin to fall soon. Mont Belvieu propane price, US propane stocks Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Carney backs Canadian fossil fuel sector

25/04/01

Carney backs Canadian fossil fuel sector

The prime minister's focus is on Canada becoming a superpower in conventional and clean energy, writes Yulia Golub Calgary, 1 April (Argus) — Canadians will vote for a new federal government on 28 April after recently assumed prime minister Mark Carney triggered an election on 23 March. The new leader has moved ahead in the polls and is running on more favourable policies for the country's fossil fuel industry, having already axed a carbon tax on the sector. Carney, who was sworn into office on 14 March after former prime minister Justin Trudeau stepped down, will face off against Conservative leader Pierre Poilievre. The Conservatives were widely expected to rout the Liberals and form the next government until a remarkable rebound in polling by the Liberals over the past two months, which has been attributed to the replacement of the increasingly unpopular Trudeau as well as rising anti-US sentiment linked to US president Donald Trump's tariffs on Canada and "51st state" rhetoric. Carney has removed a carbon tax on fossil fuels from 1 April, ending a contentious federal policy among the electorate. Abolishing the carbon tax has been one of Poilievre's campaign pillars. Canada will become a superpower in "both conventional and clean energies", says Carney, who has mentioned the need for more pipelines, trade corridors and energy infrastructure to diversify Canada's energy exports away from the US . The shift in energy policy priorities under the prime minister makes him more closely aligned with the Conservatives. Carney's strong opposition to the Trump administration is boosting his appeal, while Poilievre is increasingly being seen as having similarities to Trump. "We are facing the most significant crisis of our lifetimes because of President Trump's unjustified trade actions and his threats to our sovereignty," Carney said on 23 March when he announced the election. Speaking four days later after Trump said a new 25pc tax on imported vehicles and vehicle parts would be "permanent", the prime minister declared the "old relationship we had with the US... is over". Canada imposed retaliatory 25pc tariffs on select US goods from 4 February, subsequently delayed until 4 March, and says it plans to introduce additional tariffs if Trump follows through with his pledge to slap even higher taxes on the US' trading partners from 2 April. The two leaders held their first call on 28 March, in which they agreed to negotiate new economic and security agreements after the 28 April election. "We had a very, very good talk," Trump said. The US' 10pc tariff on Canadian energy imports remains in place. Canada's largest oil and gas firms have asked the government to declare an "energy crisis" to expedite new pipelines, ports and LNG facilities, while bolstering trade relationships beyond the US, streamlining regulation and reducing project approval timelines. Propane pain Propane costs for consumers in Canada and the US are expected to rise as a result of the 10pc tariff, panellists at the Canada Clean Fuels Summit said on 25 March. "Even if the tariffs are eventually lifted, there is no guarantee added costs will disappear," the Canadian Propane Association's vice-president of government relations, Katie Kachur, said. The tariffs could cost propane suppliers up to $200mn/yr, she said. Canada is exporting more propane by sea to Asia but most — about 62pc in 2024, customs data show — heads to the US, Kachur said. Canadian LPG term contract prices for the 2025-26 contract year starting on 1 April are falling owing to uncertainty over the 10pc tariff and forecasts for rising domestic production. Producers and buyers usually finalise deals early in the year but negotiations this year are yet to be concluded. Prices for propane from western Canada's Edmonton hub are being discussed at 23-25¢/USG ($120-130.50/t) discounts to equivalent prices at the US midcontinent hub of Conway, compared with 19-25¢/USG discounts for 2024-25. Term contracts for Edmonton butane are being discussed at 39-41pc of the calendar month average of Nymex WTI crude, down from 40-44pc. Canada's Pacific coast LPG terminals Canada LPG exports by destination Canada LPG exports by freight type Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US ethane output, demand at records in 2024: EIA

25/03/21

US ethane output, demand at records in 2024: EIA

Houston, 21 March (Argus) — US ethane production rose to a record last year on higher prices relative to natural gas, while exports and domestic consumption climbed to new highs on increased petrochemical demand, the US Energy Information Administration (EIA) said Thursday. US ethane output in 2024 rose by 6.8pc to an all-time high of 2.83mn b/d, up from 2.65mn b/d in 2023, according to EIA data. Most of the production increase came from the Permian basin, with Texas inland output increasing by 139,000 b/d to a record 1.58mn b/d and New Mexico refining districts rising by 9,000 b/d to 191,000 b/d, also a record. In the US east coast, the Appalachian No. 1 refining district, comprising much of the Marcellus shale formation in Pennsylvania and West Virginia, increased production by 37,000 b/d to a record 327,000 b/d, accounting for 12pc of total US production, up from 11pc in 2023. The production hike resulted from higher rates of ethane recovery from the natural gas stream, EIA said. Recovery was incentivized as ethane prices strengthened relative to natural gas. During 2024, Mont Belvieu, EPC ethane's premium to its fuel value — based on day-ahead natural gas at the Waha hub in west Texas — averaged 17.91¢/USG, up from 13.64¢/USG in 2023, even as outright ethane prices averaged 5.55¢/USG lower at 19.02¢/USG, according to Argus data. The increase in Permian ethane recovery resulted in large part from negative Waha gas prices for large swaths of the year. US consumption rises 8.4pc Product supplied of ethane, a measure of domestic consumption, rose last year by 8.4pc to a record 2.33mn b/d, up from 2.15mn b/d in 2023, according to EIA data. Consumption rose to records in the US east coast and Gulf coast regions, driven entirely by higher cracker operating rates, as no new ethane crackers came online during the year. Ethane consumption in the US Gulf coast rose by 109,000 b/d to 2.1mn b/d, while consumption in the US east coast nearly tripled to 103,000 b/d, up from 37,000 b/d in 2023. The east coast surge was driven by Shell's 1.6mn t/yr Monaca, Pennsylvania, ethane cracker ramping up production after coming online near the end of 2022 . Exports climb 4.5pc US ethane exports last year rose by 4.5pc to a record 492,000 b/d, up by 21,000 b/d from 2023, the EIA reported. China took the bulk of shipments and saw the largest increase in imports, spurred by increased petrochemical demand and ramped-up construction of import infrastructure. The US exported 227,000 b/d of ethane to China, up by 14,000 b/d from 2023. Ethane exports to Canada rose to 76,000 b/d, up by 11,000 b/d from 2023, while exports to India fell by 9,000 b/d to 65,000 b/d. Ethane shipments to Mexico averaged 21,000 b/d last year, up from 17,000 b/d in 2023. The Asia-Pacific region last year took nearly 60pc of US ethane exports, followed by the Americas at just over 20pc and Europe at just under 20pc. The Americas were broadly responsible for most of the growth in imports from the US year-on-year, with receipts up by 17,000 b/d and the proportion of the total rising for the first time since 2020. The proportion of exports going to the Asia-Pacific region fell for the first time since 2018, in part because attacks in the Red Sea slowed exports to India during the first half of 2024. Ethane exports from the US are poised to rise further in the next three years, as Enterprise Products' new Neches River terminal in Texas, which will be able to ship up to 360,000 b/d of ethane or propane, is scheduled for operations in starting in 2026. Energy Transfer's Marcus Hook, Pennsylvania, export terminal, which can ship 75,000 b/d of ethane, is adding refrigeration to boost its capacity to 90,000 b/d. By Joseph Barbour Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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