RE:RE:RE:RE:From Today's Globe and Mail the main reason why BIP went after and bought IPL was IPL had secured long propane contract at depressed propane prices. IPL also had secured ~ 70% of its polyproylene production as well. BIP knows a bargain when they see one.
autofocus111 wrote: mrbb PPL will do okay fractionating and marketing the propane. But not so sure about the IPL (now BIP) plastics plant. Propane is the key input, and the price has been trending up strongly. That could squeeze margins for the Heartland plant if it continues. Still, strange to see such high propane prices. A few years ago, low cost and abundant source of propane was the driving force for building the PR LPG export facility and the PDH/PP plants. Now the situation appears to have completely changed. It's not clear to me what has caused the prices to move up so significantly.
https://tradingeconomics.com/commodity/propane