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Burn Baby Burn – Ethane has found a new tier of demand, as a fuel to replace natural gas

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Report summary

Wood Mackenzie believes that ethane prices have found strong fundamental support at the current BTU value of negative $0.60/mmbtu. With ethane priced at a negative BTU value relative to natural gas, there is a strong economic incentive to replace natural gas with cheaper ethane and burn it as a fuel, providing price support.

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