Forum Discussion
tatest
Dec 29, 2014Explorer II
The propylene is considered a contaminant and thus limited to HD-5 in most jurisdictions. LPG produced from gas and "white oil" sources will have little propylene, while LPG produced as a refinery byproduct from cracking heavier liquid fractions will carry some propylene as a hard to separate contaminant. Thus the availability of HD-10 in some areas may be a concession to suppliers, allowing sales of an inferior product to lower production costs.
In most markets, the propylene is more valuable as a petrochemical feedstock than the propane is as a fuel, to the extent that specific processes have been developed to enhance propylene yield at our Gulf Coast refineries and chemical plants. Thus in the East, I don't think you would see LPG producers buying propylene from refiners, to mix with propane, to produce an inferior LPG fuel at higher cost.
I think your HD-10, where you find it, reflects an adjustment to the problems of sourcing LPG in regions where it is not available from gas processing at the wellhead.
In most markets, the propylene is more valuable as a petrochemical feedstock than the propane is as a fuel, to the extent that specific processes have been developed to enhance propylene yield at our Gulf Coast refineries and chemical plants. Thus in the East, I don't think you would see LPG producers buying propylene from refiners, to mix with propane, to produce an inferior LPG fuel at higher cost.
I think your HD-10, where you find it, reflects an adjustment to the problems of sourcing LPG in regions where it is not available from gas processing at the wellhead.
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