U.S. NGL production poised to increase more than 40% by 2016

Wednesday, November 16, 2011

Significant new investment in gas processing, pipeline transportation, liquids fractionation and petrochemical facilities is crucial to relieving bottlenecks 

A joint market study from BENTEK Energy and Turner, Mason & Company (TM&C), titled The Great NGL Surge!, reveals that U.S. natural gas liquids (NGL) production from gas plants will increase more than 950,000 b/d over the next five years, with volumes growing to more than 3.1 MMb/d by 2016. At the same time, crude oil production from the U.S. and Canada will grow by more than 2.8 MMb/d, adding to the NGL surplus.

Click here to read The Great NGL Surge! overview.

The Great NGL Surge! provides a comprehensive five-year analysis of North American NGL markets and extensive projections of supply, demand, transportation and infrastructure for every NGL product, including butane, propane, ethane, petrochemicals and y-grade. In addition, the study analyzes the impact of refinery developments on NGL demand, including shifting crude oil slates on refinery NGL production. This market study drills down to a product-by-product, region-by-region review of the data behind each assertion and conclusion.

Key Takeaways:

• Current processing, pipeline and fractionation infrastructure is inadequate to handle the growth in NGL production.

• New quantities and qualities of crude and condensates will produce both challenges and opportunities for refiners.

• For the next few years, regional basis differentials for crude oil and NGLs will be wide and volatile due to logistical constraints.

• A surplus of propane and normal butane is developing, with the U.S. becoming a net exporter of both products by 2012.

• By 2014 a surplus of ethane will develop, resulting in ethane rejection in regions with high transportation costs to market.

• Growth in Canadian demand for natural gasoline as diluent is expected to continue, with exports growing up to almost 170 Mb/d by 2016.

BONUS: BENTEK’s GIS Layer Files offer a specific geospatial package that includes all NGL pipelines, processing plants, fractionators, crackers and gas basins referenced in The Great NGL Surge!

To learn more, please contact your BENTEK sales representative, call BENTEK Sales at 303-988-1320, reply to this email or click here.