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PetroLogistics LP Message Board

  • jrad52 jrad52 Jan 9, 2013 10:52 AM Flag

    Plant re-starting

    Company announces plant re-start, pretty much as predicted. I figured they announce the re-start just because they announced the stoppage.

    This message is really responding to your last message (there's only 2 of us on this board), but there's no reply button on the message (thank you, Yahoo) and the string was getting pretty long anyway.

    You really seem to know your stuff. Certainly I don't. I used PGP generically because I can't spell propylene. But your point about the ethelyene crackers shifting to ethane is key, I think. Ethane prices have tanked even more than propane in the last year, and ethelyne crackers making up 37% of production probably added to the drop in propylene pricing.

    Anyway I'm thinking that the propane/propylene pricing for Q4 will resemble Q2 rather than Q3, and things will be looking up for a while. But my real reason for buying PDH is EPD's decision to join the party. EPD supplies all of PDH's propane and I guess it's getting killed on the low prices. So it's decided to start its own PDH facility or maybe 2. It really seems to validate Petrologistics' technology and business model, at a cheaper price. I'd feel a bit better if PDH didn't have the recent history of work stoppages for technical problems, but I guess that's to be expected with any new plant.

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