OREANDA-NEWS. Lone Star NGL Mont Belvieu LP (LST) sent out notices to its storage holders at the end of May requiring storage holders to keep inventory levels at or below contracted levels.

Previously, storage holders would be allowed to store additional barrels with written permission from LST. However, until further notice LST will not be providing additional storage.

Talks of storage constraints have been ongoing in recent weeks after a period of rain caused concern of brine contamination at the storage hubs at Mont Belvieu, Texas. The storage constraints are for all products, but propane has been leading the bulk of the constraint as stockpiles see record levels.

Propane inventories at the US Gulf coast stand at 50.199mn bl, the highest level seen since the US Energy Information Administration (EIA) began reporting propane stockpiles. Propane stockpiles at the US Gulf coast account for 63.7pc of the total nationwide inventories, which stand at 78.795mn bl.

Traders have been heard searching for additional storage from retailers.

Spot propane prices were firmer today despite the storage constraints as buyers were heard in the marketplace after unearthing additional storage options.

LST propane started the session sold at 41.125?/USG and rose to 41.875?/USG in morning trade. EPC propane also rose by 0.75? to 40.125?/USG.

The storage constraint in June has pushed traders into the future markets to roll gallons from June to July and even into August.

The remainder of the NGLs at Mont Belvieu saw thin liquidity today.