The US shale gas revolution has left the energy market in a state of flux. Future North American LNG exports present an emerging threat to Qatar, which will face growing competition in the Asian market. But another feature of the North American shale gas boom is that it has led to a long-term, sustained increase in LPG production in the US, enabling rapidly increasing volumes of LPG exports.
Between 2012 and 2013 alone, US LPG exports rocketed from 196,000 b/d to 332,000 b/d – a 70% increase. US LPG will put pressure on Gulf exporters, who dominate the Asian LPG market, and may affect pricing dynamics. The changes to the LPG market, with an increased range of suppliers and an increased range of petrochemicals feedstock are structural, Al Troner, President of Houston-based Asia Pacific Energy Consulting (APEC), tells MEES. Gulf exporters understand that they face a new source of competition, “but they’re unsure what to do about it,” he adds. (CONTINUED - 1156 WORDS)