|  Clifton Linton

New Conway LPG-by-Rail Picture Forming as Mid-Continent Supply Grows

When Energy Transfer Partners’ Mariner East 2 (ME2) natural gas liquids (NGL) pipeline opens this year, propane and butane production from the Marcellus and Utica shales is likely to be diverted to the pipeline. This will leave domestic consumers looking for alternate sources of supply. One place they may look to is Conway, Kansas.

The hub is seeing NGL prices trade at hefty discounts to Mt. Belvieu, Texas. May Conway Normal Butane (OPIS) futures settled 15.25cts under Mt. Belvieu on Wednesday. May Conway Propane (OPIS) futures settled 10.375cts/gal under May Mt. Belvieu propane futures.

These are much-larger than usual spreads reflect increasing supplies in Conway and stronger de...

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