Despite raw-mix NGL production from gas plants dropping from peak levels hit in January 2012, an additional 15% growth is expected by 2014.
BENTEK’s NGL Production Plateaus Before Shifting into High Gear
reveals that U.S. natural gas liquids (NGL) production has leveled off from peak January 2012 levels, averaging 2,357 Mb/d for the week of April 19, 2012.
This decrease is due to a number of reasons, including slow natural gas production growth and pipeline maintenances in the Gulf Coast. In addition, pipeline constraints in the Midcontinent have led to extremely low ethane prices and ethane rejection in the Midcontinent and Rockies regions. Despite the current NGL plateau, BENTEK’s NGL Production Plateaus Before Shifting into High Gear
projects new pipeline and fractionation capacity scheduled to come online over the next two years will eliminate bottlenecks and propel NGL production growth of 360 Mb/d by the end of 2013, an increase from today’s levels of 15%.
This Market Alert provides a review of NGL production factors currently holding back growth, and explains how these dynamics will affect the market over the next few years. The data and analysis presented in this Market Alert was taken from BENTEK's NGL Supply Report™