Edit ModuleShow Tags

U.S. Producers Target Wet Gas Production

EIA says hydrocarbon liquids enhance profits


The U.S. Energy Information Administration (EIA) says the relatively high value of hydrocarbon liquids has driven producers to focus on wet gas production.

It said high production levels have depressed gas prices but the liquids in wet gas -- ethane, propane, butanes, and natural gasoline -- are linked to crude oil and give wet gas a significant price premium over pipeline-quality dry gas.

It said the natural gas plant liquids composite spot price (which approximates a value of liquids produced at gas processing plants) is about halfway between West Texas Intermediate (WTI) crude oil and natural gas spot prices.

EIA said wet gas production is increasing at a faster rate than dry gas. “Between 2008 and 2013, volumes of liquids produced from wet natural gas grew at an average of 7% annually, with increases concentrated in the Gulf Coast.”

It said increased liquids production has depressed NGL prices, particularly ethane and propane. Some ethane, which is currently priced below natural gas, is being left in the dry gas stream, a phenomenon known as ethane rejection. EIA said ethane rejection volumes range between 200 and 400 million bbl/day.

Edit ModuleShow Tags

Archive »Archive »

TransCanada Subsidiary Signs System Expansion

TransCanada Corp.’s NOVA Gas Transmission subsidiary has signed contracts for a US$570 million system expansion by 2018.

EGCR Seeks Education Program Proposals

Eastern Gas Compression Roundtable (EGCR) officials are soliciting proposals for its education program for 2016.

Motortech Americas Signs Global Agreements with Exterran and Archrock

Cat G3608 For Czech Republic

SKF Magnetic Bearings Go Subsea