World LPG production poised to surge; ethane will grow in Middle East

Ajey Chandra Ron Gist Ken Otto S. Craig Whitley Purvin & Gertz Inc. Houston The worldwide LPG industry continues to expand faster than most other energy markets. World trade in ethane is also expanding, especially in the Middle East.Growth in residential and commercial markets for LPG, particularly those east of the Suez Canal, has been especially strong, with India and China leading the trend. Weak economies and high LPG prices in 2003 slowed this growth somewhat, but 2004 growth was strong as some of those same economies expanded rapidly.The future of the LPG markets is clouded, however, by prospects for a surge in production over the next several years. Market growth can absorb t...

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