What “Global” LPG Looks Like

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45 kg LPG Cylinders

Loading LPG Cylinders into a truck in Trinidad

Good morning USA! For those who want to have a better understanding of what the "global" LPG market looks like, here's a great glimpse from Trinidad. Points to note - these are 100# (45 kg to the rest of the world) cylinders, and they ARE energy for many households across the world. Clean burning, portable fuel that beats gathering and burning wood or the fumes from kerosene by a mile. Another point this article makes is that prices for this essential good are often subsidized by the government. So when you're trying to forecast supply and demand for the global market, remember that consumer prices are kept from fluctuating as much as the producer prices that we see posted everyday at Mont Belvieu.

The low prices of the past few years of shale surplus have supported a number of projects to expand the use of LPG at the consumer level by justifying investments in import facilities, storage, and bottling and distribution assets. All this has boosted global demand and gone a long way to balance the market. Now, we're sitting on the edge of our seats hoping supply has moved up enough to keep US inventories off the bottom this winter.