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NGLs Week is PetroChem Wire's comprehensive summary of price trends, upstream and downstream costs, operations news and supply/demand forecasts. The report contains everything you'll need to understand what's happening in the NGL markets.

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Demand for Appalachian ethane to see steep climb due to exports

HOUSTON, August 30, 2016 (PCW) -- Last week, NGLs Week looked at the current and forecasted ethane production out of Appalachia given the recent announcement by Shell to build a 100,000 b/d ethane pipeline to support its 3.5 billion lbs/yr cracker. This week, Austrian polymers firm Borealis said it would delay its ethane exports out of Marcus Hook by nine months to 3Q 2017 due to delays with the Mariner East 2 pipeline.

In light of these announcements and the fluid supply-demand situation in that region, NGLs Week will examine the slate of current and upcoming demand infrastructure in Appalachia.

Current ethane demand from the Northeast comes in the form of exports:

More demand is en route:

In total, demand for Appalachian ethane could more than double by 2021, and almost triple if a second cracker comes online (**NB: estimates derived from various company and industry presentations). But the bulk of this growth (70-79%) will still be in the form of exports, be they waterborne or pipelines. -- Samantha Hartke

Next week: Putting demand and supply together. What next for regional balances?

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