NEW YORK May 29 ICAP Energy and Gasteam America LP plan to announce on Thursday that they have formed a strategic business alliance to complement their respective liquified petroleum gas (LPG) operations, according to a news release obtained by Reuters.
The agreement will allow Gasteam, a physical brokerage and international marketing and consulting firm, to benefit from ICAP Energy's futures and derivatives expertise and infrastructure.
ICAP Energy, the energy business of ICAP plc, will gain access to the international LPG markets by working with Gasteam's futures and swaps clients, said the release, which has not yet been made public.
Houston-based Gasteam is a participant in the growing export market for U.S. propane and other LPGs.
In addition to propane, LPG includes the natural gas liquids (NGL) components ethane, butane and isobutane. NGL production has increased in the United States as part of the recent boom in U.S. oil and natural gas production.
The United States exported record amounts of propane in the last quarter of 2013, topping 400,000 barrels per day in October, November and December.
The deep freeze that struck the United States this past winter, along with storms and disruptions to supply infrastructure caused propane prices to jump to $5 a gallon in January at the Conway, Kansas, storage hub, jumping from around $1.75 just days before the cold weather hit.
ICAP did not immediately respond to requests for comment. (Reporting by Robert Gibbons; Editing by Grant McCool)