The economics of extracting ethane in Alberta versus the United States.

摘要

Natural gas produced in Alberta contains a small amount of natural gas liquids (NGLs). These liquids can be partially or entirely separated from the gas, during gas processing. This thesis attempts to determine the optimal location for the extraction of one of these liquids, ethane. Using a comparative cost analysis, the competitiveness of extracting ethane is examined at four locations, (northwest Alberta, Edmonton, Alberta, inland Texas and Chicago), and for four scenarios (a rich stream extracting 85% of the ethane, a lean gas stream extracting 85% of the ethane, a rich gas stream extracting 50% of the ethane and a lean gas stream extracting 50% of the ethane). Of course the costs associated with extraction depend not only on where extraction occurs, but also on the type of extraction process chosen, the nature of the gas to be processed and the destination of the product. A comparison of the costs involves determining capital and operating costs for the extraction facility, as well as downstream gathering, CO;The results of the analysis indicate that the optimal location for the production of ethane destined for the US Gulf Coast market is inland Texas. For the Edmonton, Alberta market, ethane extracted at that location is the most competitive. Finally, for the north-western Illinois market Edmonton was the most competitive supply source for ethane.