Experts see shift in economics of propane cracking

09/1/2010 | ICIS Chemical Business (U.K.)

Cracker operators ordinarily ramp up their use of liquefied petroleum gas during the summer as demand wanes for propane as a heating fuel. This summer, however, a perfect storm of economic turmoil, scheduled maintenance at Asian refineries and restricted supply caused by oil-consortium quotas have made LPG a less attractive feedstock for cracking operations. "[T]here are some new variables for flexible-feed cracker operators that look as if they are here for the long term," writes John Richardson.

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ICIS Chemical Business (U.K.)