SNG seen bolstering LP-gas traffic

Journal Article · Mon Mar 27 04:00:00 EST 1978 · Oil Gas J.; (United States)

OSTI ID:5881032

Becraft, J; Nygaard, H

A surge in SNG production from LPG, which could stem in part from government policies, may raise the declining profits of marine transporters and U.S. importers of LPG; such SNG would have a distinct cost advantage over Alaskan gas and coal-derived gas and could compete with LNG; if LNG costs $5/million Btu in 1984, it would equal the cost of SNG made from butane at $0.30/gal (butane will probably be the favored SNG feed); an industrial market for LPG would develop immediately if there were a 10% cut in the price spread between LPG and No. 2 fuel oil, which were priced at $3.50 and $2.47/million Btu, respectively, in the summer 1977. At the seminar, H. Nygaard (Norw. Guarantee Inst. Ships and Drilling Vessels A/S) proposed a plan calling for independent tanker-owners to charter-in their tankers, probably for a two-year period; inefficient tankers would be laid up, and over-all profits from working tankers would be redistributed between their owners and owners of laid-up tankers. U.S. Government crude-import policies and tanker safety standards are discussed.

• Research Organization: North. Liquid Fuels Co.
• OSTI ID: 5881032
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 76:13; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
ECONOMIC IMPACT
FLUIDS
FUEL GAS
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
HIGH BTU GAS
LIQUEFIED GASES
LIQUEFIED PETROLEUM GASES
LIQUIDS
NATURAL GAS LIQUIDS
PETROLEUM PRODUCTS
PRODUCTION
SHIPS
SUPPLY AND DEMAND
TANKER SHIPS