The ethane price spread between the Mont Belvieu, Texas, and Conway, Kan., hubs has narrowed to just over a nickel last week from nearly 23 cents per gallon (gal) in early June.
Since its six-week tumble from almost 51 cents/gal in mid-September to 31.5 cents/gal in late October, the Mont Belvieu ethane price has held fairly steady. The average during that six-week span is 31.14 cents/gal, while the past week’s price is 30.38 cents/gal, down 3.65% from last week.
But Conway’s price, which suffered a six-week string in the single digits during the summer, averaged 25.3 cents/gal in the past week, its highest level since the tracking week ending June 25, 2014, or nearly 54 months. As recently as 10 weeks ago, the Conway ethane price languished at less than 11 cents/gal. It has soared 135.3% since then and 27.2% in the last two weeks alone during its six-week upward trajectory.