The number of US LPG-capable tank rail cars will grow by 29pc by 2020 to meet growing demand, Mitsui Rail Capital president Dan Penovich said today.
The large pressure rail car fleet has already grown in recent years as LPG became more attractive to move when crude prices fell. The fleet is currently overbuilt but this is temporary as LPG production and supply increases, Penovich said at the Argus Americas LPG Summit.
About 80pc of NGLs move by pipeline, but as LPG exports increase more export terminals will need infrastructure to be able to receive LPG by rail. Currently most export terminals are not capable of receiving rail cars.
