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With the industry focus on liquids rich plays and supplies of NGLs increasing, the midstream sector is rapidly building out additional infrastructure for gas processing and NGL transport. Downstream NGL demand is increasing from the Gulf Coast petrochemical industry as the lighter NGL feedstock gives this market a competitive cost structure second only to the Middle East. Competitive global propane prices are also spurring additional export capacity. Upstream, short term bottlenecks are impacting pricing and production in some cases. Recently in the Permian, Pioneer Natural Resources announced 4,800 boe/d negative impact on production due to a fractionation shortfall and Berry Petroleum has been impacted by periodic gas curtailments, higher line pressures and ethane rejection as gas plants fill up.
This docFinder Alert highlights recent presentations by the industry regarding the NGL markets. Timely and accurate data is critical to your business. PLS's docFinder database saves you time and money and provides you critical intelligence to make better decisions.
Courtesy of QEP Resources, the two slides above are from a presentation QEP gave regarding the Black Forks gas processing complex it is expanding for area producers in Wyoming for area producers as an alternative to the Mont Belvieu market. Highlights of the two slides are:
- Mont Belvieu ethane price is currently 19% of NYMEX crude oil - versus a historical 43%
- Propane price is 47% of crude - versus historical 68%
- Butanes and natural gasolines are currently not down much
- Frac Spreads at the two core NGL hubs (Mont Belvieu and Conway) are both trending down
- Conway frac spreads are worse than Mont Belvieu
- Conway ethane frac spread is negative in Q2 2012
More HOT slides and data below.
PLS highlights recent key slides and presentations on the US NGL markets. Below are additional presentations from leading NGL midstream companies MarkWest Energy Partners, Enterprise Products Partners, and ONEOK Inc. On the producer side, we highlight Marcellus NGL pricing from leading producer Range Resources.
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