The most likely explanation, IMHO, is that Qenos is having trouble securing ethane at a viable price. If STO can supply the LNG plants with a gas mixture that includes a few percent of ethane they can probably make more profit than splitting the ethane out and shipping it to Qenos. I don't know the composition the LNG processors demand, but overseas LNG can include as much as 9% ethane: http://www.beg.utexas.edu/energyecon/lng/LNG_introduction_07.php
Because EPX isn't party to the supply negotiations, holders are left in the dark, doubly so when Qenos can't supply a consumption forecast past December.
Hopefully, they will conclude an agreement for a larger supply shortly.
EPX Price at posting:
$1.31 Sentiment: None Disclosure: Not Held
