|  Clifton Linton

Edmonton, Awash in Butane, Prices Near Negative Values

The natural gas liquids (NGL) processing and storage hub in Edmonton, Alberta, Canada is awash in so much butane and that’s prices have dropped to near zero. The hub is seeing ballooning butane supplies for reasons such as increased NGL production and a decline in crude blending. Meanwhile, it has limited ability to dispose of the product with demand off in part because a key consuming plant is out for maintenance and the hub has minimal pipeline takeaway capacity. They are left to depend on rail and that path narrowed earlier this month when Canadian National Railway (CN) imposed an embargo on inbound tank car traffic. ...

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