20% increase expected in next five years; price volatility likely as industry awaits infrastructure, fractionation and cracker projects to come online Austin, TX (December 5, 2018) – Drillinginfo, the leading energy SaaS and data analytics company, has released a natural gas liquids (NGL) update, the latest in its FundamentalEdge series reports. According to the report, NGL production is hitting record highs despite fractionation and infrastructure constraints. NGL fractionation facilities process mixed natural gas liquids streams into purity products such as ethane, propane, normal butane, isobutane and pentane. NGLs are used to make plastics, petrochemical feedstocks, residential and commercial heating and cooking fuels, polystyrene foam and in blending with vehicle fuels such as gasoline. August marked the eighth record in a row as NGL production reached 4,570 MBbl/d. Drillinginfo projects that production will grow ~5% over the next year and ~21% over the next 5 years, with the highest growth out of the Permian (9% and 35% growth over one and five years, respectively). Prices will likely stay volatile as infrastructure, fractionation, and cracker projects come to fruition. With record-high supply, fractionation margins, and constrained volumes surrounding the NGL market, several midstream companies have posted significant project announcements to take advantage of the market fundamentals.… continue reading
Continue reading Natural Gas Liquid Production Continues Growth Streak. This article appeared first on CTRM Center.
Source: CTRM Center