The energy industry monitor Argus Media speculated Tuesday that propane could be added to Kitimat’s energy scene, as an ingredient to upgrade the natural gas that will be exported to Asia.
In Propane market ponders ‘hot’ LNG potential of Kitimat Argus says propane traders are keeping a close eye on the proposed liguified natural gas projects in Kitimat.
Many Asian countries that buy LNG –
including Japan – have higher Btu standards for their gas, which can be
achieved by adding propane to create so-called “hot” LNG.
Propane can be added to the LNG either at the import facility to
enrich supply to the country’s Btu standard or at the export facility
before the LNG goes to market.
Depending on supply contracts and pricing, it could make sense to add
propane to LNG produced at Kitimat, and such a move might impact the
long-term NGL market in western Canada, traders said.
Apache spokesman Bill Mintz told Argus that the ideas about propane being added to the Kitimat energy mix was premature speculation.