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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Dennis Roth who wrote (149762)4/27/2011 8:27:02 AM
From: Dennis Roth4 Recommendations  Read Replies (2) of 206093
 
CS Take on MLPs
Weekly Analysis
DOWning More Ethane
22 pages, 37 exhibits
Download Link: sendspace.com

DOW to Provide a Home for Incremental NGLs: Last week, DOW
announced that it is restarting its St. Charles ethylene cracker in 2012 (610
MM Lbs/yr) and building a new world scale facility by 2017 (3.0-3.4 MM
Lbs/yr). We estimate that the St. Charles facility will result in ~18 Mbpd of
incremental ethane demand (2% of total demand) and the world scale facility
will result in ~90 Mbpd of incremental ethane demand (~9.5% of total
demand). DOW also plans to build a new world-scale on-purpose propylene
facility by 2015 (500-600KT/yr) while looking to commercialize its propane to
propylene technology for a separate new facility in 2018. This would provide
an additional outlet for the incremental propane produced from liquids-rich
shales (propane is the second largest NGL component, comprising ~ 28% of
the NGL barrel). See CS Chemical’s team 4/21/11 note.
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