US Gulf Coast propane climbed to a seven-month high Wednesday as the first post-Harvey LPG cargoes prepared to set sail from the Texas coast.
September non-LST propane climbed 1.125 cents to 83 cents/gal, but maintained its value at 71% of crude futures.
The 54,776-mt GParagon and 54,500-mt Shaamit had reportedly un-berthed and were expected to depart from Enterprise's Houston Ship Channel and Energy Transfer's Nederland terminals, respectively. Market sources listed them among the first VLGCs to set sail from the Gulf Coast since rains from Harvey flooded the region.
The 54,490-mt Chaparral left the Phillips 66 Freeport terminal Tuesday, but remained in the Freeport queue area Wednesday afternoon, reportedly waiting to load another 5,000 mt.
Phillips 66 was in the process of restarting the 145,000 b/d Gulf Coast Fractionators facility Wednesday, the company said on its online operations information center. Phillips 66, Targa Resources and Devon Energy with Phillips operating own Gulf Coast Fractionators.
VLGC freight rates were heard to be rising, although prices were unchanged day on day at $23/mt to Northwest Europe and $52/mt to Japan through the Panama Canal.
With traders waiting for their new loading dates because of the Harvey port closures, the October ship list is fairly thin," a broker said.
"In September there is very little -- mostly swapping going on" he added. "So that does seem bullish for freight. Then there is only one owner ... in the mix for October loadings out of the US and very few relets."
Elsewhere in Gulf Coast NGLs, butane rose 1 cent to a seven-month high 98 cents/gal. Sources have pointed to rising propane, which can compete with butane as a petrochemical feedstock, as well as increased demand from gasoline blenders for strength in butane.
September non-LST ethane rose 87.5 points to 25.875 cents/gal -- a one-week high -- as Reliance's 800,000-barrel Ethane Crystal loaded from Enterprise's Morgan's Point, Texas, terminal and set sail Wednesday for India through the Suez Canal.
Ethane's premium over natural gas futures has climbed back up to about 88 cents/MMBtu after dipping as low as 46 cents/MMBtu Friday. Its premium averaged $1/MMBtu in August.
Non-Targa natural gasoline rose 75 points to $1.115/gal based on three trades at that level in the Platts Market on Close assessment process.
Targa barrels of natural gasoline were heard at parity to non-Targa, or Enterprise barrels, while Lone Star barrels remained 1 cent below non-Targa.
A market sources said Targa barrels were stronger as waterborne values climbed.
