The Great NGL Surge!

NGL production is expected to increase more than 40% over the next five years.

The shale phenomenon that reshaped the natural gas industry over the past few years is now having the same impact on natural gas liquid (NGL), crude oil and refined products markets. Surplus natural gas supplies have depressed gas prices, driving producers to focus on high-BTU, “wet” gas plays. As a result, NGL production is on the rise, with volumes from natural gas plants expected to increase more than 40% over the next five years, reaching more than 3.1 MMb/d in 2016.

At the same time, crude production from the U.S. and Canada will grow by more than 2.8 MMb/d, adding to the NGL surplus as crude quality changes and new refinery upgrading capacity comes online. Current levels of infrastructure are inadequate to handle the surge in NGL production, driving huge investments across North America in gas processing, pipeline transportation, liquids fractionation and petrochemical facilities. 

BENTEK and Turner, Mason and Company’s (TM&C) joint market study, The Great NGL Surge!, provides a comprehensive analysis of NGL markets in the U.S. and Canada, including a broad assessment of macro-level developments in NGL markets. This market study drills down to a product-by-product, region-by-region review of the data behind each assertion and conclusion. BENTEK contributed the analysis of natural gas production, natural gas BTU content, NGL production, transportation, storage, petrochemical demand and heating demand. TM&C contributed refinery models of NGL production and demand, an analysis of shifting crude oil slates on refinery NGL production and the analysis of other refinery sector developments on NGL demand.

In addition to this study, a data package as well as a bundle of GIS Layer Files™ are available to provide extra market intelligence and insight beyond what is available in the report.