LPG Dynamics in Focus

Sept. 22, 2023

The VLGC owners have experienced an extremely strong year, with rates achieving their highest levels since 2015.  One of the primary catalysts behind this robust performance is the burgeoning demand for LPG in the Far East, particularly in the context of Propane Dehydrogenation (PDH) plants which convert propane into propylene and further to plastics.  Platts has reported the inauguration of two PDH plants in China during the first 8 months in 2023, and an additional five plants to become operational by year-end, each boasting 600-660,000 mt/year capacity.

On the LPG supply side, the two primary load regions for ...

Mexico's Pemex Refinery Impact

Sept. 15, 2023

According to Mexico’s Energy Minister Rocio Nahle, the nation’s Dos Bocas refinery operated by state company Pemex is expected to run at its full capacity by the end of this year.  The refinery, with a capacity of 340,000 b/d, is projected to mainly consume local heavy crude.  The tightening crude balances in Mexico could result in less available exports to the US Gulf, where the heavy Maya grades have been very attractive post OPEC+ production cuts.  With approximately 70% of the Mexico>US Gulf volume being carried by Aframaxes, the surged growth in Aframax Caribbean>US ...