BAKU, Azerbaijan, November 20. The anticipated rise in demand for LPG/ethane is projected to average 60,000 b/d in 2023.
According to the data provided to Trend by the International Energy Agency (IEA), this increase will be primarily driven by the growing demand for ethane in petrochemical facilities, offsetting minor decreases in propane and butane.
As the agency noted, US producers have consistently ramped up operational capacities at newly established export-focused steam cracking facilities.
Ethane demand soared to a record peak, surpassing 2.2 mb/d in May and maintaining elevated levels in the months that followed, the report added.
Meanwhile, US LPG/ethane demand in September 2023 amounted to 3.88 mb/d. According to the latest data, the demand for LPG/ethane in the country in 2Q2023 totaled 3.08 mb/d.
On the whole, the US is expected to experience a 140,000 b/d increase in demand, reaching 20.3 mb/d in 2023, before undergoing a decline of 220,000 b/d in 2024.
Both US jet/kerosene and LPG/ethane are anticipated to significantly contribute to the overall annual growth this year.