Latin American LPG market impacted by US shale exports, rising oil prices

Numerous factors including US shale-gas exports and increased production of natural gas liquids (NGL) are creating complex challenges for the liquid petroleum gas (LPG) market in Latin America.

In addition to these market factors, rising crude oil prices have also impacted budgets in Latin America, where consumers rely heavily on LPGas a fuel for heating appliances, cooking equipment and vehicles, according to IHS Markit, a world leader in critical information, analytics and solutions.

LPG, also known as propane or butane, is a flammable mixture of hydrocarbon gas, as a fuel for heating appliances, cooking equipment and vehicles.

These challenges will be discussed at the upcoming 2016 IHS Latin America LPG Seminar and Workshops that will be held from November 7 to 9 at the Hotel Panamericano in Buenos Aires, Argentina.

According to Walt Hart, vice president of NGL research and consulting at IHS Markit, and one of the keynote speakers at the upcoming seminar, the Latin American markets are feeling the changes in global trade patterns brought on by the LPG production and exports from the US.

“We’ve been hosting this event for 22 years, and many in the industry are commenting that this is the most complex market they have ever experienced. Global LNG production has increased and a glut is expected, and at the same time the region is responding to rising crude oil prices and potential implications from the Mexican energy reform, so these issues will drive our discussions at the event,” Hart added.

Company executives from oil and gas producers, refiners, petrochemical producers, distributors, traders and ministry officials will join IHS Markit researchers on the event agenda.

Some of the top officials and company leaders speaking at the event include:

• Pablo Popik, undersecretary of refining and marketing, Ministry of Energy and Mining, Argentina
• Octavio Perez, president of AMEXGAS (Mexico)
• Francisco Garcia, LPG Purchasing deputy manager, Lipigas (Chile)
• German Ortiz, CEO, Strat Energy Consultants (Colombia)
• Rob Donaldson, vice president, NGL Domestic and International Marketing and Transportation, Targa Resources
• Aaron Doughty, manager, NGL Business Dev., Phillips 66
• Joe Fasullo, manager of International NGLs, Enterprise Products Partners
• Juan de Urraza, manager of Liquids Business, TGS
• Shawn Grau, LPG regional desk lead and senior trader, Trafigura Trading LLC