Uncertainties for FSU projects threaten LPG export potential

Resource development by the oil and gas industry of the former Soviet Union faces many obstacles. Keys are access to and control of export infrastructure; these more than anything else will dictate the rate at which oil and gas projects can develop.From an LPG perspective, supply will exceed demand, prompting exports from the region to increase. Without additional fractionation facilities, however, export of mixed product may become increasingly difficult in the longer term. And, high transportation costs have depressed netback value realized for LPG exports and make it difficult to justify additional investment in existing facilities. This revenue stream will likely make only a marginal ...

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