Natural Gas Intelligence
Report Cautions on Refining Changes, NGL Glut

Monday, December 05, 2011

Natural gas and motor gasoline never had much to do with each other, but new environmental rules and the natural gas liquids (NGL) abundance from shale plays could make for a bit more of a connection, Bentek Energy LLC and Turner, Mason & Co. (TMC) have found.

The Environmental Protection Agency is considering revisions to its Tier 3 motor gasoline specifications, which could affect NGL supply and demand, according to Bentek and TMC. Specifically, efforts by refiners to meet new specifications would affect markets for butane and natural gasoline, they said.

"The blending of butane and natural gasoline into motor gasoline could be severely limited, said a report by the research firms.

"Not only will these proposed rules impact the refining industry, they also have significant implications for natural gas processing, storage and transportation facilities," said Bentek Vice President Rusty Braziel.

To access a complete copy of this report, please click here.