However much we like to try to put crude oil and natural gas prices in the back of our minds, mainly because none of us really know enough about them, they are still the catalyst for what happens next in the LPG space. Today I explore what’s probably going on in the heads of those oil and natgas players, as they assess what’s going to happen next, and what will be the driving forces. Whether it tells us any more than we already know, or directs us in a certain path on LPG, well we have to wait till I get to the end.
Bangladesh is emerging as potentially one of the most significant future international importers of LPG. It’s created a lot of excitement, as well as growing logistical headaches, trying to work out all the pieces that will be needed to fit the puzzle. It’s as much a question of geography as it is economy, I think I did pretty well in geography at school – I’ll leave that for you to decide!
I used to think maths was one of my best subjects at school, after woodwork that is, but when it came to the Pertamina contract in Indonesia, the traders would explain to me the delivery cost economics, prior to entering a number in the tender document. In simple terms, they explained it was something like 3+5=8. However, when we finally put in our offer, the number always seemed to look more like a 7.
Whenever I go to a conference these days there’s always somebody talking about Propane Dehydrogenation (PDH). I think I might have already done the PDH blog last week! But back in my early days we all were talking about Autogas, LPG as a motor fuel. This was going to be the next big thing. So, I thought I might revisit it again, but maybe link it to what’s happening in Turkey.