Despite year-over-year increases, U.S. natural gas liquids (NGL) production from gas plants drops from peak levels reached in January 2012, averaging 2,341 Mb/d this week

Wednesday, April 25, 2012

BENTEK’s new Market Alert, NGL Production Plateaus Before Shifting into High Gear, reports that raw-mix NGL production from gas plants has increased 304 Mb/d or 15% compared to year-to-date 2011 levels. Despite the overall increase, data from BENTEK’s NGL Supply Report reveals that average U.S. NGL production for the week ending April 25th is at 2,341 Mb/d, slightly down from peak levels reached in January. However, NGL production is projected to increase an additional 15% by the end of 2013.

U.S. NGL production has leveled off since January due to reasons that include slow natural gas production growth and pipeline maintenance 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 Market Alert 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 of 15% from today’s levels.

BENTEK’s new NGL Supply Report provides a weekly assessment of U.S. raw-mix NGL production, offering the most up-to-date review of raw-mix supply in the marketplace today. This revolutionary new report bridges the three-month production data gap between Energy Information Administration (EIA) data and current activity, tying natural gas production, ethane rejection and PADD-to-PADD flows to NGL production without a time lag.

BENTEK’s NGL Supply Report tracks:

• Daily and weekly U.S. raw-mix production by PADD, including year-to-date changes

• PADD-to-PADD flows and analysis on market dynamics

• Raw-mix storage and fractionation within each PADD

• New capacity of raw-mix NGL pipelines in the U.S.

• Ethane rejection and fractionation spreads

• Purity product supply by PADD


BENTEK’s NGL Market Monitor provides an extensive resource for NGL production, prices and infrastructure in the U.S. This report includes industry highlights, prices, purity product spreads and estimated petrochemical margins for the five major NGLs: ethane, propane, normal butane, isobutane and natural gasoline.

BENTEK’s NGL Databank Suite tracks natural gas processing developments and NGL production in the U.S. and Canada, including detailed information on individual plant throughput.

To learn more, please contact your BENTEK sales representative or call BENTEK Sales at 1-888-251-1264