Argus International LPG

Copyright 2014 Argus Media Ltd

PRICES

Argus International LPGDaily international LPG prices and market commentary

Key prices $/t

Bid Ask

Propane cif ARA (large cargoes) +4 758 - 768 +5

Butane cif ARA (large cargoes) +6 742 - 752 +7

daf Brest propane 685 - 702

daf Brest propane-butane mix 650 - 670

Propane Argus Far East Index (AFEI) 895 +1.0

Butane Argus Far East Index (AFEI) 892 +6.0

Argus Mixed Index 893.5 +3.5

Americas: Propane Mont Belvieu pipeline fob (Jun) /USG

VWA Low High

Non-LST 101.086 +0.875 100.750 - 101.500 +0.500LST 100.857 +0.750 100.750 - 101.000 +0.000USGC export fob $/t +3.969 595.218 - 596.524 +3.969

US propane del Japan (AUSJ) $/t +4.0 780.0 - 781.5 +4.0

US propane del ARA (AUSE) $/t +4.0 690.0 - 691.5 +4.0

International comparisons (Jun) $/t

Propane Butane

Argus North Sea Index (ANSI) 755.5 713.0

Sonatrach fob Bethioua 755.0 730.0

Saudi Aramco 835.0 835.0

KPC (Kuwait) 835.0 835.0

Argus Middle East netback 792.0 789.0

Argus arbitrage $/t

Propane Mt Belvieu NW Europe AFEI

Physical spot 528.25 763.00 895.00

Jun 526.25 759.00 896.00

Jul 528.25 756.00 895.00

Aug 531.50 756.00 891.00

Regional assessments $/t

Propane NWE diff to Mt Bel AFEI diff to

Mt BelAFEI diff to

NWE

Physical spot -234.75 -366.75 -132.00

Jun -232.75 -369.75 -137.00

Jul -227.75 -366.75 -139.00

Aug -224.50 -359.50 -135.00

Naphtha

Bid Ask

cif northwest Europe +1.50 926.00 - 928.00 +1.50

cif Mediterranean +1.50 916.25 - 918.25 +1.50

cfr Japan +11.00 939.50 - 947.00 +11.50

fob Mideast Gulf +11.00 904.25 - 911.75 +11.50

LPG freight $/t

VLGC Mideast Gulf-Japan 40,000-44,000t 103

1,800t Tees-Lisbon butane 105

1,800t Tees-ARA 45

Issue 14111 | Friday 06 June 2014

OVERVIEW

Cfr Far East freight rates continued to rise.European prices were lifted by stronger crude and paper.US prices were mixed at the weeks end.

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Propane: ARA diff to Med, cif $/t

CONTENTS

Northwest Europe 2Mediterranean, FSU 3International swaps 3Middle East 4Asia-Pacific 4US 7Latin America 9Industry news 9

Copyright 2014 Argus Media Ltd Page 2 of 11

Argus International LPG Issue 14111 | Friday 06 June 2014

Northwest Europe and Mediterranean $/t Bid Ask

Propane

cif ARA (large cargoes) +4 758 - 768 +5

fob northwest Europe (small) +5 668 - 678 +5

cif ARA (small) +5 713 - 723 +5

fob ARA (barge) 670 - 680

fca ARA (rail) 690 - 700

cif Mediterranean (large) +5 755 - 765 +5

fob Mediterranean (small) 790 - 800

fca Mediterranean (rail) 765 - 775

Propane averages (Jun) Price

cif ARA (large cargo) 761.800 +0.300

fob ARA barge 676.429

Butane

cif ARA (large cargoes) +6 742 - 752 +7

fob northwest Europe (small) 695 - 705

cif ARA (small) -3 760 - 770 -3

fob ARA (barge) 750 - 760

fca ARA (rail) 760 - 770

cif Mediterranean (large) +5 750 - 760 +5

fob Mediterranean (small) 785 - 795

Butane averages (Jun) Price

cif ARA (large cargo) 740.100 +1.725

fob ARA barge 756.143

NORTHWEST EUROPE

Stronger crude helped lift paper values but the physical market showed little sign of change. Rumours that the BW Lord, currently loading at Enterprise in the US gulf, might come to Europe, were uncorroborated but provided the only real point of interest in an otherwise dull market. So fartheonlyconfirmedUStonnessettoarriveinnorthwestEurope from the US are due on Monday off the Clipper Sun. Gunvor was back bidding again for 20-24 June arrival ToT tonnes from 50:50 $758/t and balance June cif ARA -$6/t, raisedto$762/tonthefixedpriceand-$5/tonthefloatingelement. With balance June paper assessed at $759/t, the bid was worth $758/t basis Flushing, now only a dollar under paper, though still not tempting to any possible sellers who remain aloof.

Thin supplies of large cargo butane are helping to lift theoretical values. After recently falling to a seven-year low of under 78pc of naphtha, buyers say that the prospect of acquiring tonnes under 80pc is now extremely unlikely with something in the low 80s pc increasingly probable. However offers are scarce with no further information on suggestions of Algerian tonnes heading north that circulated on Thursday. With naphtha values moving higher the price forbutanefirmedonbotharelativeandanoutrightbasis.

Propane coaster prices tracked movements on the large cargo market at the close of the week, as spot trade remains in the doldrums. There were reports of a middle of the month cargo becoming available next week from northern France, but whether anyone will be there to pick it up is uncertain with buyers currently thin on the ground.

But again the butane coaster market provided contrasting vitality as petrochemicals continue to pick up tonnes, with fourconfidentialcifdealsreportedlydone.Twowereforhigher quality butane while the other two were for product highinolefins,ethaneandsulphuratdiscountedlevels.Delivered prices relative naphtha were heard in the region of the mid-70pc range up to the high 80pc marker, depending on quality, volumes and loading times. This leaves the price ratio to naphtha at 82-83pc, pulling the outright price down a touch from yesterday despite naphthas small gain. There were no discussions or deals heard on the fob side, with Petredec not returning to offer a 4,000t cargo, the price consequently drifting sideways.

Spot propane trading activity in the Amsterdam-Rotterdam-Antwerp area continued to drift with warm weather and a holiday weekend sapping already sluggish interest in LPG. With little change in either paper or large cargo values and no substantive changes to local supply and demand balances values moved sideways.

Indications that Shell may be running its Moerdijk cracker at slightly lower rates did little to a slow spot market. Small ship butane values appear to be picking up and this is providing some support for the barge sector but no fresh trading activity was reported.

Crude Price

Argus North Sea Dated 108.64 +0.26

Ice Brent futures settlement

Jul 108.61 -0.18

Aug 107.86 -0.25

Sep 107.16 -0.28

Argus successfully completes Iosco assurance review Argus has successfully completed an external assurance review of its oil price benchmarks, including those for LPG markets. The review was carried out by profes-sionalservicesfirmPwC.Anindependentandexternalreview of oil benchmark prices is required on an annual basis by international regulators in order to satisfy Ioscos Principles for Oil Price Reporting Agencies (the PRA Principles). For more information and to download the report visit our websitehttp://www.argusmedia.com/About-Argus/How-We-Work



FSU $/t

Bid Ask

fob Black Sea propane-butane mix 660 - 694

fob Black Sea propane 650 - 685

fob Black Sea butane 655 - 680

daf Brest propane-butane mix 650 - 670

daf Brest propane-butane mix /t 477 - 492

daf Brest propane 685 - 702

daf Brest propane /t 503 - 515 -1

daf Brest differential to cif ARA (large) -69.5

daf Ukraine propane-butane mix 660 - 675

Argus RBS propane-butane mix index 640 - 670

fot Burgas (Lukoil posted) propane-butane mix 809 +3

Argus Polish Domestic Index (APDI) 768 +1

International swap prices $/t

Bid Ask

Propane northwest Europe

Jun +4 757 - 761 +4

Jul +4 754 - 758 +4

Aug +3 754 - 758 +3

Sep +2 756 - 760 +2

Oct +1 759 - 763 +1

Nov 763 - 767

3Q14 +3 755 - 759 +3

4Q14 763 - 767

1Q15 -1 731 - 735 -1

Naphtha northwest Europe

Jun +3 922 - 924 +3

Jul +4 911 - 913 +4

Aug +2 900 - 902 +2

Propane CP Middle East

Jul +6 803 - 807 +6

Aug +5 803 - 807 +5

Sep +5 805 - 809 +5

Argus Far East Index

Jun +7 894 - 898 +7

Jul +8 893 - 897 +8

Aug +6 889 - 893 +6

MEDITERRANEAN

Spot trade in the Mediterranean was limited at the end of the week with discussion on propane and butane sparse. ReportsthatBPhadmanagedtooffloadtheirbutanecargooffered over the last few days from Lavera surfaced but thedealwasunconfirmed.PricesonbothpropaneandbutanereflectedmovementsinnorthwestEurope,whichinturnwereinfluencedmorebycrudeandnaphthathanany notable market activity. There were no new reports of Black Sea supplies shortening today, but even trimmed output from the region would likely have a negligible impact while buying is lacklustre.

FSU

Daf Brest assessments remained unchanged since they correlate with buyers and sellers parity levels.

Prices in the Black Sea ports held steady while the discussions were inside Thursdays Argus value range.

INTERNATIONAL SWAPS

Paper trade was thin at the close of the week with some early activity on July CP and later in the day for June cif ARA the only notable exceptions. Values edged upwards acrosstheAsia-Pacific,MideastandnorthwestEuropeanmarkets, as well as on naphtha, to keep the propane-naphtha spread stable and help support slight gains on east-west and AFEI-CP spreads.

A total of four June cif ARA deals were recorded during the 16:15-16:30 assessment period, all of which were for 2,000t, at $761/t, $760/t, $758/t and $756/t, moving lower through the 4.15-4.30pm timeframe. This pushed the front month swap up $4/t to $759/t. But a slight easing of the contango from July through to December helped to level off any gains so that the later month swaps were relatively unchanged.

Naphtha swaps also rose today, albeit more gently, leaving the June propane-naphtha spread $1/t higher at -$164/t. And the movements in later months were similar to those seen on propane leaving spreads further along thecurveinsimilarpositionstoyesterdayfindingthenarrowest point in January 2015 at -$105/t.

Mideast swaps rose slightly more robustly than their Asia-PacificbrethrentopushtheAFEI-CPspreadoutto$90/t in July one dollar below a deal done earlier in the day.MeanwhiletherisesinAsia-Pacificpushedtheeast-west spread out to $137/t in June and $139/t in July.

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Butane: AFEI diff to cif Med $/t



LPG arbitrage $/t

Middle East and Asia-Pacific averages $/t

Price

Middle East (Jun)

Propane -10.526 -1.082

Butane -10.263 -0.819

Argus Far East Index (Jun)

Propane 887.200 +1.950

Butane 885.000 +1.750

11+11 propane-butane mix (Jun) 886.100 +1.850

Mt Bel differential to NWE

Physical spot -234.75

Jun -232.75

Jul -227.75

Aug -224.50

NWE differential to AFEI


Jun -137.00

Jul -139.00

Aug -135.00

Northwest Europe

Physical spot 763.00

Jun 759.00

Jul 756.00

Aug 756.00

AFEI


Jun 896.00

Jul 895.00

Aug 891.00

Mont Belvieu


Jun 526.25

Jul 528.25

Aug 531.50

MT Bel differential to AFEI


Jun -369.75

Jul -366.75

Aug -359.50

Reported done ($/t)756 (2kt), 758 (2kt), 760 (2kt), 761 (2kt) Jun cif ARA761 Jul cif ARA757 Aug cif ARA3 Jun-Jul cif ARA802.5, 804, 805, 810 (x2) Jul CP91 Jul AFEI-CP86 Aug AFEI-CP

MIDDLE EAST

July paper swaps were valued at $803/t with a trade done at that level before Asian timestamp amid a bid-offer range of $800-$805/t.

The spot differential for June loading propane cargoes in the Mideast Gulf were maintained at a $30/t discount against the announced June CP of $835/t.

As a deal was seen at -$5/t for July propane/butane CP paper swap, the spot differential for June loading butane cargoes in the Mideast Gulf was assessed at a $25/t discount against the June CP.

ASIA-PACIFIC

Refrigerated

DiscussionsontheAsia-Pacificrefrigeratedmarketson

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Asia-Pacific $/tCP basis Timing Bid Ask

Propane

Gulf CP fob Jun Jun -35 / -25

Japan CP cfr Jun 1H Jul +1 58 / 62 +1

Japan cfr +1 893 - 897 +1

Taiwan CP cfr Jun 1H Jul +1 58 / 62 +1

East China CP cfr Jun 2H Jun +1 58 / 62 +1

East China cfr +1 893 - 897 +1

South China CP cfr Jun 2H Jun +1 58 / 62 +1

South China cfr +1 893 - 897 +1

Argus Far East Index (AFEI) 895 +1.0

Butane

Gulf CP fob Jun Jun +5 -30 / -20 +5

Japan CP cfr Jun 1H Jul +6 55 / 59 +6

Japan cfr +6 890 - 894 +6

Taiwan CP cfr Jun 1H Jul +6 55 / 59 +6

East China CP cfr Jun 2H Jun +6 55 / 59 +6

East China cfr +6 890 - 894 +6

South China CP cfr Jun 2H Jun +6 55 / 59 +6


West coast India CP cfr Jun Jun +6 50 / 54 +6

Argus Far East Index (AFEI) 892 +6.0

11+11 propane-butane mix

Japan cfr +3 891 - 896 +4


Argus Mixed Index 893.5 +3.5

Propane pressurised

South China CP fob Jun Jun -10 50 / 60 -10

South China fob Jun -10 885 / 895 -10

South China CP cfr Jun Jun -10 80 / 90 -10

South China cfr Jun -10 915 / 925 -10

Vietnam CP cfr Jun Jun -10 105 / 115 -10

Butane pressurised

South China CP fob Jun Jun -10 50 / 60 -10

South China fob Jun -10 885 / 895 -10

South China CP cfr Jun Jun -10 80 / 90 -10

South China cfr Jun -10 915 / 925 -10

Vietnam CP cfr Jun Jun -10 105 / 115 -10

Friday were mainly focused across tenders that were placed during the week.

Taiwans Formosa Plastic tender issued yesterday was awarded at July cfr Japan naphtha minus low $50s/t for a11,000t+11,000tcargodueforarrivalonanyfivedaysbetween 6-15 July in Mailiao.

Taiwans CPC tender for a 22,000t+22,000t cargo due for arrival over 6-15 July attracted ten offers and was reportedly awarded at July cfr Japan naphtha minus low $70s/t.

Meanwhile, the freight cost from Ras Tanura to Chiba continuedtosoarabove$100/twitharecentfixturedoneat $105/t. On-going freight discussions for VLGCs were heard to be in the range of $110-$115/t. With freight cost returning to historical highs, buyers that had no requirement for prompt cargoes preferred to wait out for freight rates to correct downwards. On the other hand, sellersremainedhesitantofplacingfirmoffersbeforegetting clearer directions in VLGC freight levels.

Overnight discussions remained thin for 22,000t propane cargoesdueforfirst-halfJulyarrival.DuringtheAsiantrading window session, an European and a US trader resurfaced with their respective interest for second-half July arrival 22,000t cargoes. The European trader posted a bid for 22,000t propane due for arrival in second-half July at July CP +$90/t, which equated to $893/t. The US trader placed a corresponding offer at July FEI +$9/t, which equated to $903/t or July CP +$100/t. No deals were seen during the window session.

With the bid-offer range almost similar to yesterdays levels,cfrpropanepremiumsforfirst-halfJulyweremaintained at $92/t. As such, 22,000t propane cargoes arriving over 1-16 July were assessed at $895/t or July CP +$92/t basis Japan and south China.

The premium for 11,000t+11,000t cargoes were assessed at$88/t,inlinewitharecentfirst-halfJulydealthatwasdone around that level. As such, 11,000t+11,000t cargoes

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China wholesale propane/butane mix yuan/t

Bid Ask

East China

Ex terminal

Ningbo 6,200 - 6,250

Wenzhou 6,150 - 6,200

Taicang 6,200 - 6,250

Shanghai 6,300 - 6,400

Zhangjiagang 6,200 - 6,250

Fujian 6,500 - 6,600

Ex refinery

Shanghai 5,890 - 5,990

Zhenhai 6,110 - 6,510

Yangzi 6,040 - 6,090

Fujian 5,850 - 5,900

Gaoqiao 5,880 - 5,980

Qingdao 5,750 - 5,850

South China

Ex terminal

Zhuhai 6,150 - 6,200

Shenzhen 6,550 - 6,600

Raoping 6,100 - 6,150

Nansha 6,200 - 6,300

Shantou 6,100 - 6,150

Yangjiang 5,850 - 5,900

Ex refinery

Maoming 5,760 - 5,810

Guangzhou 5,950 - 6,000

NortheastChinaexrefinery

Daqing 6,070 - 6,170

Dalian -200 6,300 - 6,400 -200

NorthwestChinaexrefinery

Urumqi 4,900 - 5,000

InlandChinaexrefinery

Lanzhou -100 5,350 - 5,400 -100

Yan-An 5,350 - 5,400

due for arrival over 1-16 July were assessed at $893.5/t basis Japan and south China. PetroVietnam issued a buy tender for 22,000t+22,000t cargo due for arrival over 20 June to July 10. The tender closes on 9 June.

Fresh demand for butane from Far Eastern petrochemical crackers remained low as majority had procured their requirements for July. 22,000t butane cargoes due for arrival over 1-16 July basis Japan and south China were assessed at $892/t, about $38/t lower than July cfr Japan naphtha prices.

PressurisedThe surplus from recently imported cargoes during April and May continued to cause south Chinese terminals to lower their offer prices.

Fob south China offers were placed as low as $890/t or June CP +$55/t. Traders were heard to be actively seeking first-halfJunecargoesfromsouthChinaandsendthemtothe Philippines, Bangladesh and Vietnam.

In Vietnam, selling ideas were around June CP +$110/t cfr Haiphong amid pressurised freight costs of around $50/t from south China to Haiphong.

Buying interest was dismal as traders viewed July CP to be lower than the announced June CP of $835/t for both propane and butane.

The Chinese domestic markets ended the week on a steady note.

Ex-terminal prices in south China were steady at 6,100-6,600yuan/t for mixed cargoes, which equated to $868-939/t on cfr basis.

No price changes were seen at Maoming and Guangzhou after Wednesdays price cuts due to limited buying interest and moderate stockpiles.

Ex-terminal prices in east China were also left unchanged at Yn6,150-6,600/t amid thin trading volumes.

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Japan: Butane diff to naphtha $/t

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Propane LST ratio to Nymex WTI %



US non-LST averages /USG

Month to date

Propane (Jun) 102.088 -0.240

Butane (Jun) 123.425 -0.403

US forward market /USG

Low High

Mont Belvieu propane

Jun +0.750 100.750 - 101.000 +0.000

Jul +0.750 101.000 - 101.500 +0.750

Aug +0.875 101.625 - 102.125 +0.875

Sep +1.125 102.625 - 103.125 +1.125

3Q14 +1.000 101.750 - 102.250 +1.000

Mont Belvieu butane

Jun -0.500 121.500 - 122.000 -0.500

Jul -0.250 121.750 - 122.250 -0.250

Aug -0.125 122.125 - 122.625 -0.125

Sep +1.125 123.125 - 123.625 +1.125

3Q14 +0.875 122.375 - 122.875 +0.875

Americas: Mont Belvieu pipeline fob (Jun) /USG

VWA Low High

LST

Propane 100.857 +0.750 100.750 - 101.000 +0.000

Targa propane 101.625 +1.375 101.375 - 101.875 +1.375

Butane 119.500 -0.625 119.250 - 119.750 -0.625

Non-LST

Propane 101.086 +0.875 100.750 - 101.500 +0.500

Propane equivalent $/t +4.570 526.217 - 530.135 +2.612

Butane 121.838 -0.375 121.250 - 122.375 -0.625

Butane equivalent $/t -1.698 549.263 - 554.359 -2.831

Purity ethane 29.136 -0.250 28.750 - 29.375 -0.250

Purity ethane equivalent $/t -2.000 212.000 - 217.000 -2.000

Ethane-propane mix 29.000 +0.375 28.750 - 29.250 +0.375

Isobutane 127.500 -0.250 127.250 - 127.750 -0.750

Natural gasoline 213.068 212.500 - 214.000

USGC export fob $/t +3.969 595.218 - 596.524 +3.969

A 11,000t refrigerated cargo is expected to arrive in east China on 11 June.

In north China, prices at Dalian dropped by Yn200/t to Yn6,300-6,400/t in order to stimulate sales.

In inland China, prices at Lanzhou dropped by Yn100/t to Yn5,350-5,400/t due to less demand from central China and limited local demand.

US

Mont Belvieu, Texas, NGL markets ended the week with mixed sentiment. Trade interest was sparse after a lively week that shocked market participants with an inventory build that stood nearly 70pc above the expected build level of 2.2mn bl.

Propane prices at the LST terminal were mostly range-boundand37.5ptfirmerday-over-day,whilenon-LSTpricesjumpedmuchmoresignificantlyby62.5pt.Meanwhileethane prices moved to parity with E/P mix. The two marketscametogethertostandflatat29/USG.

Mont Belvieu heavy markets were also mixed. Butane markets softened day-over-day in the midst of mixed outside futures markets. Isobutane prices were down 50pt from Thursdays average level and trade remained muted for the majority of the session. While natural gasoline prices spent mostofthedaybouncingbetweenthe213-214/USGrange,late session dealings in the afternoon window saw values softentothedayslowof212.50/USG,bringingtheaverageprice to parity with the prior days level. Natural gasolines value relative to WTI crude softened 1pt to 87.25pc.

JulyWTIfuturesgained18/blasitsettledthesessionat $102.66/bl. The Nymex Rbob futures benchmark moved intheoppositedirectionasitdroppedto293.90/USG,ordown1.73/USGfromThursdaysclose.MeanwhiletheHenry Hub natural gas July futures contract gained ever so slightly by 70pt to settle at $4.679/mnBtu.

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Propane LST diff to ethane non-LST /USG

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MtB: Nat gasoline non-Dynergy diff to butane non-LST /USG



LSTpropaneopenedthesessionpricedat100.875/USG, and maintained that average price throughout the session,reflectinga37.5ptfirmingday-over-day.Onemajor rolled 500,000 bl of June LST propane to July to collect0.25/USGasthepriorsessionsflatforwardcurvesteepened to a 25pt contango. Outer month activity saw fourthquarterbarrelspricedat104/USG,whilea2015January/February trade valued the forward month at a 62.5pt backwardation. Calendar 2015 propane was done at 102.625/USG.

At the non-LST propane hub, markets opened at parity with LST but deviated as the day matured. Values climbed toahighof101.50/USG,butthesessionwascappedwithatradedoneat101/USG.Thepriorsessionsflatrelationship against LST prices diverged as non-LST propane carried on average a 50pt premium to concurrent LST materials.TheJune/Julycurvesflatstructuremovedtoa0.50/USGcontango.

At Hattiesburg, Mississippi, 5,000 bl of propane changed handsat101.375/USG.

As propane hubs separated, ethane values converged with E/P mix prices. One lone outright E/P mix deal was doneatmiddayat29.25/USG.Withinmomentspurityethanewasspreadatflattomix.

Ethane prices opened 12.5pt below Thursdays midpoint at29.25/USG.Valuessoftenedtohitalowof28.75/USGbefore an afternoon boost. The market closed at its peak of29.375/USG.Meanwhilethepriordays12.5ptcontangosteepened to 25pt.

Heavy NGL markets were mixed day-over-day, and values felt downward pressure as the session progressed. Naturalgasolinemarketsendedthedayflattotheprevioussessions average level.

Non-LST butane kicked off the session priced at 122.25/USG,or12.5ptlowerthanThursdaysmidpoint.

AMERICAS DEALS

Mont Belvieu spot deals

Timing /USG 000 bl Timing /USG 000 bl

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Butane Mt Belvieu non-LST current month ratio to WTI /USG

E/P mix non-LST Normal butane non-LST (cont.)

Jun 29.250 10 Jun 121.625 10

Jun 121.750 10

E/P mix non-LST/non-LST ethane Jun 121.750 25

Jun/Jun 0.000 10 Jun 122.000 10

Jun 122.250 10

Purity ethane non-LST Jun 122.375 10

Jun 28.750 10

Jun 28.875 10 Isobutane non-LST

Jun 28.875 10 Jun 127.500 10

Jun 29.000 10

Jun 29.000 10 Natural gasoline non-LST

Jun 29.250 10 Jun 212.500 25

Jun 29.250 10 Jun 212.625 10

Jun 29.375 10 Jun 212.625 25

Jun 29.375 30 Jun 213.000 10

3Q 29.500 15 Jun 213.000 10

Jun 213.000 25

Propane LST Jun 213.125 10

Jun 100.750 10 Jun 213.250 10

Jun 100.750 25 Jun 213.250 10

Jun 100.875 10 Jun 213.500 10

Jun 100.875 10 Jun 213.750 10

Jun 100.875 10 Jun 213.875 10

Jun 100.875 10 Jun 214.000 10

Jun 100.875 10 Jul 212.500 10

Jun 100.875 75

Jun 101.000 10 Mont Belvieu natural gasoline Targa

4Q 104.000 75 Jun 217.750 10

Cal Year 102.625 84

Butane non-LST/non-LST butane

Propane non-LST Jun 0.250 15

Jun 100.750 10 1Q -4.250 150

Jun 100.875 10

Jun 100.875 5 Ethane non-LST/non-LST ethane

Jun 101.000 10 Jun/Jul 0.250 25

Jun 101.000 10

Jun 101.250 25 Propane LST/LST propane

Jun 101.500 10 Jan/Feb -0.625 100

Jul 101.250 25 2Q/3Q -1.000 30

Jun/Jul 0.500 10 Jun/Jul 0.250 500

Propane non-LST/LST propane Targa/non-LST propane

Jun/Jun 0.000 10 Jun/Jun -0.500 10

Normal butane non-LST Nat gas non-LST/non-LST Nat Gas

Jun 121.250 10 Jun/Jul -0.875 50



INDUSTRY NEWS

Australias April LPG exports fall

Australias April exports of LPG fell 46pc from a month earlier to 94,793t to a four-month low because of a sharp decline in propane and butane shipments to Japan.

Propane shipments dropped 40pc to 44,063t in April, its lowest level since January, according to Australian Bureau of Statistics (ABS) data. Propane shipments to Japan eased to 21,000t in April from 48,000t in March. South Korea bought 22,000t, unchanged from the previous month.

Butane exports fell 35pc to 50,700t in April, as exports to Japan fell to 23,500t from 78,500t in March that had been the highest level in more than two years.

Australias LPG exports generated A$88.43mn in export earnings, or $82.36mn based on the average exchange rate used by the ABS in April of A$1/$0.9314. This equates to an average price of $868.85/t.

Rhine barge costs to remain up next weekFreightcostsforrefinedproducts,petrochemicalsandcoalbarges on the river Rhine are set to rise further into next week as water levels continue to fall.

Water levels at the key measuring point of Kaub fell by 5cm from yesterdays levels to 170cm by 05:00 local time

this morning, and are forecast to drop as low as 134cm by the morning of 10 June.

Water levels at Kaub need to be above 180cm to allow barges to load to their full capacity. Once the waters fall below that level a surcharge of 10pc of the freight cost is added for every 10cm drop to compensate vessel owners for lost revenues caused by barges sailing partially loaded.

Moerdijk blast keeps styrene prices highAn explosion at the SMPO-2 petrochemical unit at Shells Moerdijk site overnight on 3-4 June has led to a force majeure on German chemicals producer BASFs propylene

Themarketpeakedat122.375/USGandshed1.125/USGtohititssessionlowof121.25/USG.Averagevaluesdeclined 62.5pt session-over-session. The LST marketplace maintaineda2.25/USGdiscountrelativetonon-LST.Meanwhilethetwohubssawaflatforwardcurvemovetoa0.25/USGcontango.

Isobutaneatthenon-LSThubchangedhandsat127.50/USG, or 50pt below the last sessions midpoint. After the deal was done early in the session, bids and offers diverged asfaras2/USGapart.Julyvaluesfirmed25ptrelativetoJune.

Natural gasoline markets ended the day at parity with the last sessions average value. While prices were relatively strong throughout the session, the end of the day sawaturnthatpricedthemarketplace1.50/USGbelowthe high trade of the day.

The non-LST natural gasoline marketplace opened at 213/USG,or25ptbelowthelastaverageprice.Afterhittingahighof214/USG,valueswerejoltedbackandforth in choppy trade with little clear direction. The forward curve was also held unchanged as it was pegged at a 75pt backwardation.

LATIN AMERICA

OnFridaytheVLGCMorstonfinishedloadingatTargasGalena Park export terminal and began its journey to South America. The vessel is moving to Suape, Brazil, and potentially Santos as well. It is due to land at Suape on 18 June for an NOC.

TheNavigatorMarswasalsofinishedloadingatTarga.The handy-sized vessel will sail to Omoa, Honduras.

At Enterprises Houston Ship Channel export hub, the Clipper Victory returned from Chile. The VLGC loaded alongside another VLGC, the BW Lord, which is expected to sail to the Caribbean.

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oxide supply, and expectations of higher styrene prices and a tighter supply in the near future.

By the close of trading today, June and Julys prices were above the $1,610/t mark, up by around $70/t compared with 3 June, having initially jumped by around $55/t on 4 June.

SMPO-2 is equally owned by the Shell-BASF Ellba joint venture and has a capacity of 550,000 t/yr of styrene. Total western European styrene capacity for 2014 is around 5.4mn t.

BASF has yet to issue a statement on its styrene supply chain. But Styrolution a styrenics producer owned jointly by BASF and UK petrochemical producer Ineos said it was investigating the cause of the explosion.

Shell has a second wholly-owned styrene and propylene oxide unit in Moerdijk the 460,000 t/yr SMPO-1 which wasunaffectedbythefire.Ethylbenzeneusedtofeedthe units is supplied from within the Shell system and by BASF from its Antwerp site.

Part of BASFs 890,000 t/yr ethyl benzene plant in Antwerp is used to feed BASFs needs for the Ellba unit in Moerdijk. Styrene from BASFs share of the Ellba plant is sold to Styrolution as part of a 2011 deal that established Styrolution as an independent entity outside the BASF group. It is not known how long the SMPO-2 unit will be out of operation, but is likely to last months rather than weeks. Benzene demand for ethyl benzene to feed the unit is around 35,000 t/month, split equally between BASF and Shell.

Senate bill includes propane pricing planThe US Senate Appropriations Committee yesterday passed appropriations legislation that includes provisions for public propane pricing education.

Senate energy Committee chairwoman Mary Landrieu (D-Louisiana)includedtheprovisionsinthefinalbill.Thecommittee approved the FY15 Commerce, Justice and Science Appropriations bill by a vote of 30-0, and approved the FY15 Transportation, Housing and Urban Development (THUD) Appropriations bill by a vote of 29-1.

Senate majority leader Harry Reid (D-Nevada) is expected to move on appropriations bills, including those passed yesterday, later this summer.

Landrieu included an amendment meant to unlock Commerce Department funds directed at public outreach once the price of propane gas rises beyond a certain level.

Under existing law, the Commerce Department annually

calculates the price of consumer propane annually and compares that price to an index of competing fuels. If the propane price is more than 10.1pc of that index price, the Commerce Department restricts funding to the Propane Education and Research Councils (PERC) educational outreach budget. PERC is a federally-mandated propane safety organization. The Commerce Department is also required to update its propane price every 180 days, but Landrieu said that calculation has not been completed since February 2012.

Landrieus amendment directs the Commerce Department to use propane pricing data available from the Energy Information Agency to determine whether propane prices have fallen below the 10.1pc threshold, unlocking the PERC educational funds.

Landrieu said last winters propane price spike could havebeenmitigatedbyconsumersfillingtheirpropanetanks for home heating earlier in the season. Landrieu said the amendment will allow PERC to reach out to consumers and warn them ahead of time to be prepared and not wait tofilltheirtanks.

Canyon Midstream pens Permian dealsCanyon Midstream has reached agreements with ExxonMobil subsidiary XTO Energy and US independent Apache for capacity on its planned James Lake natural gas gathering system in west Texas Permian basin.

The company declined to give the details of those agreements but a spokesman said that XTO and Apache wouldrepresentasignificantpartofthecapacityatits100mn cf/d James Lake gas processing plant in Ector County, Texas.

The plant and other parts of the James Lake system which includes 60 miles (97km) of 12-inch diameter pipeline and six compressor stations is scheduled to begin operations late this year. It will provide gas into the El Paso natural gas pipeline and NGLs to the Chaparral and Sand Hills pipelines.

The system will serve the Texas counties of Ector, Andrews, Martin, Dawson and Gaines. Those counties sit atop the Permian basin, an oil- and gas-rich formation underlying west Texas and southeastern New Mexico.

Canyon Midstream is planning a second phase of the James Lake system that will add another 100mn cf/d processing plant and 60 more miles of 12-inch pipeline, expanding the system into the Texas counties of Howard and Borden by the second half of 2015, the company said.


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