Disruption to LPG imports at the northern French port of Le Havre after a jetty was damaged has forced market participants to seek alternative Northwest European markets, reported Platts, citing unnamed sources.
LPG prices generally weaken as the northern hemisphere’s summer approaches, but the Le Havre disruption could tighten logistics in the inland propane markets, they said.
Receivers were looking for supply alternatives by rail and road, one source said.
In late March a tanker delivering to petrochemical sites along the Grand Canal du Havre struck the wharf of the Norgal gas terminal, rupturing a gas pipe. The pipe was not full at the time of incident, but contained gas residues, local media reported.
Subsequently, imports into Le Havre were stopped for repairs to the jetty, with disruptions potentially continuing until October, according to market players. Norgal is one of the major LPG sites in France, with an average of 2.5m tonnes of butane and propane received each year sea and land. Norgal has a total storage capacity of 90,000 m/3 comprising 40,/3 of propane and 50,000 m/3 of butane, with Antargaz, Vitogaz and TotalEnergies all customers. They are also all shareholders of Norgal.
Propane demand from Le Havre is predominantly in the residential sector, while butane is utilized for cracking.
