Major energy event of the year was the collapse of the crude oil price and its domino effect on NGL and of course LPG prices – according to Poten & Partners.  Brent crude oil prices hit between $50 and $65 per barrel resulting in LPG product prices being at a 7-10 year low whilst freight rates are hitting historical high levels throughout the year.  As a result, the trading arbitrage has been closed for lengthy periods creating challenging dynamics for the LPG market as a whole.

Key developments of the international LPG markets this year are:

• Further expansion of the US export terminal capacity following the additions and export built-up from Enterprise and Targa in Houston and Sunoco in Marcus Hook and Nederland terminals with further additions from Enterprise and Oxy expected to follow suit by the end of the year.
• Continuous seaborne LPG export growth which is forecasted to increase by 4 to 5 mm t in 2015. The bulk of this export increase is estimated to come from the US.
• Significant demand growth in China (petrochemical and retail demand) and India (retail demand), which together are expected to import the lion’s share of the incremental LPG seaborne export growth to balance the market for 2015.
• Continuous strength of the European demand for propane as a steam cracking feedstock.
• Prolonged high freight rates, which averaged above the threshold of $100/t from January and July 2015.
• Undergoing discussions about the lifting of the Iranian sanctions, which if they are confirmed will progressively add significant volumes to the LPG export market.
• OPEC's decision to continue producing crude oil at the same level is having an effect on the uninterrupted flow of LPG volumes

These developments raise several questions for discussion at CMT’s 10th LPGtrade Summit:

• Is all this terminal capacity needed?
• How the crude oil price can affect the global NGL and hence LPG production and exports in the short to medium term?
• Will the VLGC freight market continue to be strong in 2016 or the large orderbook and forthcoming Panama Canal opening will have a significant effect on freight rates?
• Has Asia the capability to continue to absorb all the LPG production growth out of the US?
• What is the potential for further LPG petrochemical consumption of LPG as a feedstock in Asia?
• How will US Gulf prices compare with Asian and European market prices in the future and how the trade arbitrage will be affected by freight rates and crude oil price swings?

More than 10 hours of networking opportunities at CMT’s 10th LPGtrade Summit to meet and renew business ties and forge new business relationships.

Not to be missed – Networking Dinner Hosted by BAYEGAN Group and CMT on 24 November 2015, for ALL speakers and participants.

PLUS Pre Summit Workshop (23 November 2015) on Interactive Workshop on LPG Trade – Pricing, Trading, Shipping & Risk Management.

Register NOW for the 3-days' exciting event with huiyan@cmtsp.com.sg. Contact us for attractive bundle and group discounts.

• Introduction
• Trading Environment
• Contractual Terms & Conditions
• Trading Techniques

• LPG Shipping
• Introduction to price risk management
• Case study and debriefing

CMT’s 9^th LPG Trade Summit

11-13 Nov 2014 in Dubai

Four Category Winners announced at LPGtrade Awards 2014

Four LPG industry awards were given away at the recently concluded 9th LPG Trade Summit held in The Address Dubai Marina on 11 November, 2014.

CMT's highly anticipated LPGtrade Awards Night ceremony paid tribute to the outstanding contributions by LPG industry players amidst much fun-fare. The Best Trading Company was awarded to Petredec, while Navigator Gas won the Best Logistics Partner award. Clarksons walked away with the Best Broker award and the coveted Personality of the Year was presented to JC Heard, Naftomar.

Over 150 delegates, speakers, award nominees, guests as well as sponsors and exhibitors attended the awards ceremony, savoring fine food and entertainment. The first-ever LPG Awards conferred by CMT was strictly decided on the basis of voting, conducted online.

The Awards Night was part of the 9th LPG Trade Summit where top-notch speakers from Phillips 66, Poten & Partners (UK) Ltd, SHV Gas Supply & Risk Management SAS, OPIS, Panama Canal Authority, Amexgas, Astomos, E1 Corporation, Oriental Energy Company Limited, FACTS Global Energy, Dorian LPG Ltd., Viamar AS, Libra Fearnley Energy and F M Energy Services participated.

Phillips 66 and the Vitol Group were the Corporate Sponsors while Nimex Petroleum Group was the Coffee Break sponsor of this summit.