2017 saw some tumultuous times for Asian butane. What started the year as a tight market, with butane trading at $120/ton over propane — a 25% premium — flipped to a surplus market in the second quarter, with the products trading about even, then reversed again later in the year. In the middle of it all was India, whose relationship with butane as a cooking fuel suffered a spring break-up before reconciling in the fall. It was a textbook example of how today’s energy markets are buffeted by changes in production trends, government intervention and the growing influence of U.S. exports, which are becoming a much bigger deal in the global butane trade. Today, we continue our discussion of the supply and demand dynamics that shaped Asian butane markets in 2017, and what these trends may mean for 2018.
Bio:
Ong Han Wee is a consultant for FGE in Singapore. In this role, Han Wee is responsible for participating in LPG research and analyzing the LPG East of Suez markets, including supply, demand, trade, infrastructure and new projects. Prior to joining FGE, he worked as an Asia Market Editor for OPIS, also in Singapore. During his tenure, Han Wee was responsible for assessing daily LPG prices in Asian markets and also was in charge of writing a daily LPG market overview. Han Wee has a Bachelor’s degree in Engineering from Nanyang Technological University in Singapore.
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