The Isobutane vs. normal butane differential hit an all-time record in May, averaging a monthly high, and as a percentage of the price of Isobutane is in the stratosphere. As shown in the graph below (source OPIS), the differential is up from 1.5 c/gal in mid-February (green dashed oval), to a high of 60.5 c/gal in early May, averaging 54 c/gal for the month (red dashed oval). As we’ve noted in previous postings, the runup is in part due to demand to produce MTBE and alkylate for octane enhancement, with a boost from the start-up of Next Wave’s ethylene to alkylate plant in early April.
Featured Articles
- Analyst Insight
Wild Volatility in the Isobutane – Normal Butane Differential: 60.5 c/gal to Negative -4.4 c/gal
On May 8, 2024, the spread between Mont Belvieu isobutane and normal butane soared to 60.5 cents per gallon, a level surpassed only once before, one day back in 2018.
- Analyst Insight
Mont Belvieu Iso-Normal Spread Soars To Record High
The iso-normal price spread (Mont Belvieu non-TET) has skyrocketed since early March hitting a record high of 54.6 cents/gal on May 6.
- Blog
Traveler - Supply/Demand Trends That Spurred a Gulf Coast Ethylene-to-Alkylate Project Hold Strong
There’s always a risk when you take a new approach to doing or making something that your expectations won’t pan out — that something you hadn’t figured on happens and messes things up. But oh, the satisfaction that comes when the stars align exactly as you foresaw. The folks who developed Project Traveler, a recently completed Houston-area plant that produces high-value, octane-boosting alkylate from ethylene, isobutane and other widely available and low-cost feedstocks, know that good feeling, as we discuss in today’s RBN blog on the project’s economics.
