Ethane prices likely to rise along with exports

摘要

Houston—As a by-product of increased US shale oil and gas production, natural gas liquid ethane output has also ramped up in recent years and spot prices have declined as supply outweighed demand. US ethane production capacity currently exceeds demand by about 300,000 b/d and could exceed demand by up to 700,000 b/d by 2020, “after considering the estimated incremental demand from new ethylene facilities that have been announced,” Enterprise CEO Mike Creel said last week when announcing the company’s planned Texas Gulf Coast ethane export facility. Enterprise anticipates that total US NGL production could grow to near 5.34 million b/d in 2020 from a current level near 3 million b/d. Ethane production may grow to about 2.5 million b/d from near 1.28 million b/d today, it said. At the end of 2008, US ethane production was about 686,000 b/d, Enterprise said.