Bentek
Upswing in petrochemical industry driven by low U.S. NGL costs

Wednesday, January 11, 2012

BENTEK and Turner, Mason & Company’s The Great NGL Surge! reports that by 2016, the surge of U.S. natural gas liquids (NGLs) production from shale plays will increase ethane production 50% or 475 Mb/d. The growth in NGLs also will keep ethane prices low relative to other petrochemical feedstocks. As a result, significant investment opportunities are being presented to the petrochemical market.

The Great NGL Surge! predicts that between 2011-16, U.S. ethylene production will increase 5.2 billion pounds per year due to steam cracker restarts and expansions. The total amount of ethane used to produce ethylene is expected to increase 240 Mb/d, reaching 1.2 MMb/d in 2016. This growth presents an unexpected opportunity for petrochemical producers to build new ethylene production plants. Additional investments in propane and normal butane dehydrogenation will be possible during this time due to a reduced propylene and butadiene supply from steam crackers and low NGL prices.

BENTEK and Turner, Mason & Company’s 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, natural gasoline and y-grade. In addition, the study analyzes the impact of refinery developments on NGL demand and shifting crude oil slates on refinery NGL production.

ALSO AVAILABLE FROM BENTEK:

- Geospatial layer bundle for The Great NGL Surge! – Includes all NGL pipelines, processing plants, fractionators, crackers and gas basins referenced in the report.

- Data package for The Great NGL Surge! – Analyze the datasets behind the report.