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Phillips 66 LPG export terminal on schedule

  • : LPG, Petrochemicals
  • 16/01/29

Narrower arbitrages for US LPG exports will not impact the profitability for terminals in the years ahead, Phillips 66 chief executive Greg Garland said today.

"We're going to have to export propane to make things work for the next several years in this country," Garland said on an earnings call. Phillips 66's 150,000 b/d LPG export terminal near Freeport, Texas, remains on schedule to start operations in the second half of this year. Operations at its new fractionator in Sweeny, Texas, which will support the terminal, commenced in December.

Garland said Phillips 66 has already made "great progress" in securing long-term contracts for takeaway capacity from the terminal, which will be able to load about eight VLGCs per month.

"The arb between the US and other markets in the world are narrower, but we see shipping constraints being alleviated," Garland said. "On the longer term we feel there is going to be a significant commercial opportunity, but the primary opportunity on that project is the fees."

Chevron Phillips Chemical's US Gulf coast petrochemical project, which will boost its ethylene and polyethylene capacity by more than 40pc, is on schedule for completion in mid-2017.

Chevron Phillips Chemical reported $212mn in earnings during the fourth quarter, down $40mn from the prior quarter, because of lower margins and maintenance during the period, which reduced operating rates in its olefins and polyolefins segment from 94pc to 92pc quarter-over-quarter.

Lower commodity prices compressed margins on olefins and polyolefins during the quarter, said president Tim Taylor, but the demand outlook is stable in early 2016.

"We continue to see good demand. We don't see inventories building," Taylor said. "We look at the underlying fundamentals, barring a significant change we would expect similar industry margins as we saw in the fourth quarter."



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25/02/19

US housing permits tepid in Jan, PU outlook unchanged

US housing permits tepid in Jan, PU outlook unchanged

Houston, 19 February (Argus) — Stagnation in new housing permits in January suggests restrained US housing construction in early 2025 as annual permit and start figures lag the prior year. Domestic polyurethane (PU) market expectations for 2025 did not improve in January, with participants planning for flat to modest increases in consumption for the year as a whole. The building blocks of polyurethanes, such as isocyanates like polymeric MDI (PMDI), go into insulation, roofing applications and carpet underlay. PMDI demand so far has been largely restocking activity rather than end-uses in construction, as expected in the first few months of the year. Most participants anticipate stronger demand in the second half of the year, an expectation which January's slow start to construction activity seems to support. February PMDI contract prices settled at 95-103¢/lb, a rollover from the previous month as supply and demand are stable, according to Argus . However, multiple price increase announcements have come out and as cost inputs continue to put pressure on the market many participants expect prices to rise in the coming months. Privately-owned housing permits were at a seasonally-adjusted annual rate of 1.483mn units in January, according to data from the US Census Bureau and the Department for Housing and Urban Development (HUD). While January was up 0.1pc from December's rate, it was 1.7pc lower than the year prior and currently stands below the rates of each of the first three months of 2024. If January's lower annual comparison were to extend through the rest of the first quarter, it could set 2025's pace of new housing construction behind the prior year's through the early peak building season that lasts from the spring to early summer, as permits serve as a forward indicator for new housing starts. Single-family permits stood at 996,000 units in January, unchanged from December after the rate increased for three straight months. But while the recent uptrend in single-family permits presents a bright spot in the housing construction outlook, January's rate was still 3.4pc below the previous year. Housing starts in January were at a seasonally-adjusted annual rate of 1.366mn units, 9.8pc below December and 0.7pc lower than January 2024. Single-family starts were at a rate of 993,000 units, 8.4pc below December and 1.8pc lower than the previous year. The stagnant month-to-month and lower annual comparisons for permits could extend declining housing starts in the months ahead. The latest builder sentiment survey for February enhanced the mixed forward view of construction activity brought by January's tepid permit rate. February's reading reversed the small uptick in sentiment registered in January, falling back five points to 42, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). February's result was the lowest level in five months and reflected builders' increasing anxiety about the construction market's outlook, especially with the Federal Reserve signaling it is reluctant to lower borrowing costs until inflation slows further. Any index reading below 50 denotes a weak market environment. NAHB Chairman Carl Harris said that builders were still hopeful that regulatory reform could spur development, but uncertainty over tariffs and high housing costs was resetting 2025 expectations in February. By Aaron May and Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US housing permits tepid in Jan, PVC outlook mixed


25/02/19
25/02/19

US housing permits tepid in Jan, PVC outlook mixed

Houston, 19 February (Argus) — Stagnation in new housing permits in January suggests restrained US housing construction in early 2025 as annual permit and start figures lag the prior year. Domestic PVC market expectations for 2025 did not improve in January, with participants planning for flat to modest increases in consumption for the year as a whole. PVC demand was largely tied to rebuilding inventories rather than end-uses in construction, according to market participants. Most PVC participants did not expect replenished inventories to be immediately used, with some not budgeting for stronger demand until the second half of the year, an expectation which January's slow start to construction activity seems to support. February demand has already plateaued for some PVC buyers, reaffirming the stagnant expectations for resin consumption in the months ahead. January contract prices settled at 57.5¢/lb, a rollover from the previous month due to buyers' underlying demand concerns, according to Argus . Privately-owned housing permits were at a seasonally-adjusted annual rate of 1.483mn units in January, according to data from the US Census Bureau and the Department for Housing and Urban Development (HUD). While January was up 0.1pc from December's rate, it was 1.7pc lower than the year prior and currently stands below the rates of each of the first three months of 2024. If January's lower annual comparison were to extend through the rest of the first quarter, it could set 2025's pace of new housing construction behind the prior year through the early peak building season that lasts from the spring to early summer, as permits serve as a forward indicator for new housing starts. Single-family permits stood at 996,000 units in January, unchanged from December after the rate increased for three straight months. But while the recent uptrend in single-family permits presents a bright spot in the housing construction outlook, January's rate was still 3.4pc below the previous year. Housing starts in January were at a seasonally-adjusted annual rate of 1.366mn units, 9.8pc below December and 0.7pc lower than January 2024. Single-family starts were at a rate of 993,000 units, 8.4pc below December and 1.8pc lower than the previous year. The stagnant month-to-month and lower annual comparisons for permits could extend declining housing starts in the months ahead. The latest builder sentiment survey for February enhanced the mixed forward view of construction activity brought by January's tepid permit rate. February's reading reversed the small uptick in sentiment registered in January, falling back five points to 42, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). February's result was the lowest level in five months and reflected builders' increasing anxiety about the construction market's outlook. Any reading below 50 denotes a weak market environment. NAHB Chairman Carl Harris said that builders were still hopeful that regulatory reform could spur development, but uncertainty over tariffs and high housing costs was resetting 2025 expectations in February. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Low water likely to persist at St Louis into March


25/02/19
25/02/19

Low water likely to persist at St Louis into March

Houston, 19 February (Argus) — Low water conditions are expected to persist at St Louis harbor on the Mississippi River through March, causing barge loading issues for both carriers and shippers. Minimal precipitation coupled with increased ice formation along the harbor decreased water levels to -3.3ft on 19 February at St Louis, according to the National Weather Service (NWS). Some terminals at the harbor have been unable to load and unload barges because of the low water. Carriers expect this to become a larger issue when barges carrying northbound products reach St Louis in March. Although low water has been an issue at the harbor since early January, more barge carriers and shippers began to prepare for slipping water levels when grain barge movement picked up later that month. Some barge carriers have reduced the amount of product placed in barges in order to keep drafts from dipping below 9.6ft this week. Low water levels are anticipated to remain through 4 March, which may hinder barge loadings and increase delays at St Louis. St Louis has received less than an inch of rainfall over the past seven days, according to the NWS. There has been even less precipitation upriver in the Northern Plains over the past week. Larger ice formations have appeared in the harbor on account of freezing conditions. The city of St Louis is under winter weather advisory, and is forecast to receive 1-3in of snow between 18-19 February, according to NWS. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cold, refinery issues support ARA railcar prices


25/02/18
25/02/18

Cold, refinery issues support ARA railcar prices

The railcar premium has hit its highest this year as the market turned bullish in February, writes Waldemar Jaszczyk London, 18 February (Argus) — Northwest European propane railcar premiums to large cargoes hit a seven-week high by mid-February, owing to declining regional temperatures and unplanned shutdowns at German refineries. The premium of the 45t fca Amsterdam-Rotterdam-Antwerp (ARA) railcar assessment to 20,500t cif ARA large cargo prices hit $225/t on 13 February, the highest this year and up by 20pc since mid-January. The outright price stood at $775/t, down by $5/t since the start of this month, but large cargo values fell by $24.50/t to $550/t. Railcar prices slumped in early 2025 owing to high stocks and weaker than expected demand from central and eastern Europe. But sentiment has turned bullish as inland heating demand has firmed on colder weather and diminishing stocks. Meteorological agencies forecast temperatures in the Netherlands and Germany to be about 2-4°C below seasonal norms on 13-19 February. Inland supply has also tightened since mid-January because of unplanned shutdowns at two major refineries in southern Germany. The 90,000 b/d Neustadt refinery was taken off line following an explosion and then a fire. Soon after, the 310,000 b/d Karlsruhe refinery, the country's largest, shut down one of its three production lines owing to a technical fault, and is expected to remain off line until early March. Some LPG suppliers from the affected refineries have restricted loading this month, with one plant heard to have cut these by 30pc and another by a third, market participants say. This has in turn spurred buying interest from ARA's 65,000t Vopak Terminal in Flushing and 75,000t Antwerp Gas Terminal. Plant repairs are unlikely to bring a supply reprieve given the spring maintenance season is approaching. The 125,000 b/d Vohburg refinery is expected to be taken off line along with several units at Neustadt in early March. Closer to the ARA hub, ExxonMobil's 310,000 b/d Antwerp refinery might shut down for maintenance in the second half of February having already experienced issues earlier this month, market participants say. And the first permanent closure of 2025 will take place in March when Shell closes the 147,000 b/d Wesseling facility in Germany. Refinery availability of LPG has also started to be pressured by high natural gas prices. The benchmark Dutch TTF front-month gas assessment reached a two-year high of $838/t in early February on colder and less windy forecasts. A bullish natural gas market has encouraged upstream North Sea producers to leave as much LPG in the natural gas stream as possible, with large cargo propane averaging a $148/t discount to gas since the start of 2025. Refinery supply was unaffected given railcar prices remained at sizeable premiums earlier this year. But the TTF flipped to a $12/t premium to propane railcars in the first half of February compared with a discount of $75.25/t in January and $144/t in December. Getting by on their own supply Refineries are now burning their LPG in place of gas, market participants say. Almost 75pc of Europe's LPG supply comes from refineries under normal conditions. Refinery consumption of LPG surged to 1.1mn t/yr in Europe in 2022 when natural gas prices last surged, which is 7pc of regional output and compares with a long-term average of just over 250,000 t/yr, Argus Consulting data show. Resales of Poland-bound cargoes have put some downward pressure on ARA railcar prices. Poland continues to struggle with oversupply following overzealous stockbuilding prior to the EU's enforcement of an embargo on imports of Russian LPG and owing to weak demand for re-exports to Ukraine. A blockade of Kazakh cargoes on Poland's eastern border, with 7,500t reportedly stuck at the Malaszewicze crossing, arrived with previously held product. Unable to find buyers, Polish firms have started reselling cargoes bought from northwest Europe. A day does not go by without an offer from eastern Europe, a German LPG distributor says. TTF v railcar LPG $/t TTF v large Cargo LPG $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New US LPG terminal project sends strong supply signal


25/02/18
25/02/18

New US LPG terminal project sends strong supply signal

Demand for export capacity growth still exists despite the development of yet another terminal, writes Amy Strahan Houston, 18 February (Argus) — US midstream companies MPLX and Oneok this month announced that they are to develop a new 400,000 b/d (12.6mn t/yr) LPG export terminal in Texas City on the US Gulf coast. The facility is due to be operational by 2028 and signifies the belief that yet more capacity will be needed to distribute growing volumes of US LPG around the world even after other midstream companies bring on line expansions at existing terminals in the interim. The planned terminal is likely to be fed by MPLX's Bangl pipeline, which carries unprocessed natural gas liquids (NGLs) from the Permian basin to the Galveston Bay refinery in Sweeny, Texas, and is due to be expanded to 300,000 b/d from 250,000 b/d by late 2026. MPLX, a subsidiary of upstream firm Marathon Oil, is also due to build two new 150,000 b/d NGL fractionators adjacent to Marathon's Galveston Bay refinery for completion in 2028 and 2029, to provide processed LPG and ethane. An extension of the Bangl line would provide access to the new fractionators, Marathon says. As part of the project, Oneok and MPLX are also building a 24-inch (61cm) diameter pipeline that will send LPG from the latter firm's Mont Belvieu storage facility to the export terminal. Oneok will own 80pc of the line and MPLX 20pc. The project is being developed near the mouth of Galveston Bay on to the Gulf of Mexico, about 50km downstream of the Houston Ship Channel, where midstream firms Enterprise Products and Targa Resources own the 763,000 b/d and 450,000 b/d Baytown and Galena Park terminals in Houston, respectively. And it is about 60km northeast of Phillips 66's 260,000 b/d Freeport facility. The terminal project, named Texas City Logistics, comes at the same time as Enterprise works to add 300,000 b/d of capacity at its Houston facility by late 2026, while peer Energy Transfer is adding 250,000 b/d of LPG capacity at its 480,000 b/d Nederland terminal, which is about 125km northeast of Houston, by the end of this year. Tight capacity at US Gulf coast LPG export terminals as a result of weather-related delays and maintenance drove cargo premiums to forward Mont Belvieu prices to record highs of more than 30¢/USG ($156.50/t) in September, prompting talks of investment in further capacity expansions. But the project has drawn a muted response from market participants who say it may come too late to help. It will bring the US' total LPG export capacity to more than 3mn b/d by 2028, while the additional 300,000 b/d of fractionation capacity adds to the 755,000 b/d being developed by the other midstream firms in Mont Belvieu by 2026. The project complements Oneok's "disciplined capital allocation strategy" given the firm's "high expectations" for LPG supply growth and demand for export capacity, chief executive Pierce Norton says. Oneok, which does not own any LPG export capacity, has talked about its ambition to access the international market since 2019. The firm will spend $1bn on the project, while MPLX will invest $2.5bn. The US continues to ramp up NGL production alongside natural gas. Domestic propane output rose by 5.7pc on the year to a record monthly high of 2.24mn b/d in November, while normal butane production climbed by 9.4pc to a new high of 707,000 b/d, according to the EIA. The government agency expects propane output to stand at 2.26mn b/d in 2026 and butane output at 1.19mn b/d. A decade late? But the new terminal might not reap the benefits of higher fob cargo prices as it will come after the Houston and Nederland facility expansions, market participants say. Enterprise called the project "challenging", adding that LPG export values will be eroded by new capacity in the next few years. The project is "a decade late", one trader says. But the terminal will be underpinned by Marathon's existing international customer base, other participants say. US LPG sea export capacity exports Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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