Market Review and the OPIS Conference
We are just one week away from the inaugural OPIS Global LPG Conference. At this point, we thought it might be helpful to do a brief review of some of the many countries the Westlark Advisors team has examined and analyzed in the past year.
Market Review
Colombia – A Major Energy Market
Our journey began with a look at the growing propane need in Colombia (Part One, Part Two). Even if demand growth projections are lowered, there will continue to be a need for propane in this market. An increasing supply shortfall provides future infrastructure and trading growth in this nation.
Guyana – A Developing Energy Market
While the United States and Canada have seen very strong NGL (natural gas liquids) growth over the prior 10 – 15 years, the next potential “hot spot” for growth may come from Guyana (Part One, Part Two). This nation has boasted some of the strongest offshore production growth which could generate propane production over the coming decade, changing supply flows in the Western Hemisphere.
Chile – An Emerging Energy Market
Chile (Part One, Part Two), to the far west of South America, has a steady demand for propane. Unfortunately, the country’s local production is dwindling, along with the supply provided by neighboring Argentina. These circumstances have moved another South American nation into the import market, importing almost exclusively from the U.S.
Peru – A Growing Energy Market
North of Chile, we see a slightly different picture in Peru. This nation has seen an increase in Autogas demand and has governmental policies promoting the conversion of power plants to use LPG. Peru (Part One, Part Two) receives much of their LPG imports from the U.S. and expects overall imports to increase based on their growing demand.
What these countries have in common
All these nations importing LPG and propane have one thing in common – the majority of their imports comes from the U.S. This common origin point implies that the countries are subject to Mont Belvieu price movements. Anything impacting Belvieu LPG prices – either up or down – will create impacts on prices in all these nations.
Our goal – help our clients make smart decisions every day!
Our goal as commodity advisors in the energy market is to help our clients make smart decisions every day. This is why the Westlark Advisors team watches market movements closely. It’s also why we participate in events like the OPIS Global LPG Conference. Being a part of this conference gives us the opportunity to share the same kind of expert information we give our clients with others in the LPG industry.
If you are planning to attend the OPIS Conference next week, be sure to look us up. We would enjoy catching up with you! For more expert market commentary, check out our website or contact a Westlark Advisors team member today!
Market Review and the OPIS Conference
By JD Buss
