LST restricts NGL storage nominations

OREANDA-NEWS. June 24, 2015. Lone Star NGL is restricting storage nominations at its Mont Belvieu, Texas caverns until further notice to manage storage constraints at the facility following heavy rainfall.

"Mont Belvieu, Texas, has experienced unusually heavy rainfall during the months of May and June as well as exceptionally high demand to pump products into the LST facility, which has resulted in elevated brine pond levels and constraints," LST stated in a letter to storage holders.

LST will consider storage nominations only if customers already have adequate storage space with their accounts, according to the letter. Nominations are due no later than the close of business five days prior to the first business day of the month.

Storage holders will not be allowed to put a place holder for volume to be sold at a later date, and unless LST has agreed in writing, over-storage on a daily or monthly basis is not permitted.

LST's scheduling department will advise if nominations are accepted, rejected or modified no later than close of business on the last business day of the month.

Spot propane prices at Mont Belvieu tumbled in May following heavy rainfall and higher than average inventory levels. LST propane fell from 54.25?/USG at the beginning of the May to 35.25?/USG today. Prices at the EPC terminal fell even further, from 54?/USG to 31.875?/USG during the same time period. Those prices could continue to fall if this week's inventory data shows another build; that may be likely given weather-related export constraints seen last week.