Midstream, petchem players must face problems of increased ethane capacity

摘要

This conclusion to a two-part series on the outlook for US ethane analyzes changes occurring in the US ethylene industry and whether that industry can consume more ethane supplies that are poised to come onto the market. The US ethylene industry consumes more than 50% of the US natural gas liquid supply. Even before the current economic downturn, the influx of more ethane on the market from new processing plants coming online in 2007 and 2008 was putting additional pressure on the value of ethane relative to crude oil, which has been in decline since 2003 due to the reduction in light-end crackers. The current economic recession has painfully reminded gas producers and gas processors that the economic viability of any processing plant that maximizes ethane recovery is intricately tied to the health and actions of the US petrochemical industry.