Ethane exports from Energy Transfer’s Orbit terminal in Nederland, Texas continued on its upward trend during the first quarter of 2023 reaching a record level of 139 Mb/d, an increase of 56% from 1Q22. As shown on the chart below, shipments from the terminal soared last year averaging 118 M b/d (blue bars), or a total of 43 million barrels, up sharply from 21 million barrels, or 57 Mb/d, in 2021. Energy Transfer expects Orbit ethane exports to grow to 60 million barrels in 2023, or 164 Mb/d, reaching near the terminal’s 180 Mb/d capacity by year-end.
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- Blog
Kick Out the Jams - The U.S. NGL Production, Fractionation and Export Juggernaut Rolls On
Way back in 2018-19, U.S. NGL production was rising fast, new ethane-only steam crackers were coming online along the Gulf Coast, and new fractionation capacity wasn’t being added quickly enough — the capacity shortfall sent the NGL market into near-panic. Fast forward to now: NGL production is still rising but domestic demand is flat, resulting in an NGL-exports surge and a race to develop new export capacity. And fractionation capacity in Mont Belvieu and elsewhere? The market learned its lesson five years ago and, to avert another capacity crunch, midstream companies have been adding new fractionators at an almost frenetic pace. In today’s RBN blog, we discuss the ongoing fractionation-capacity buildout — and the need to quickly expand NGL export terminals.
- Blog
Send It to Me - Overseas Demand Expansions Key to U.S. Ethane Export Growth
The U.S. started exporting ethane by ship less than three years ago, first out of Energy Transfer’s Marcus Hook terminal near Philadelphia and then from Enterprise Products Partners’ Morgan’s Point facility along the Houston Ship Channel. Good news for NGL producers, right? Well yes, sort of. Because while waterborne export volumes rose through 2016, 2017 and the first seven months of last year, they’ve been flat-to-declining ever since, with further ethane-export growth hampered primarily by a lack of international demand. That demand may soon be ratcheting up — mostly in China, but also in Europe — but it won’t happen overnight. Today, we discuss ethane export trends, the Morgan’s Point and Marcus Hook marine facilities, and plans for new ethane export capacity tied directly to new overseas ethane crackers.
- Blog
Hot to Go! - Rising NGL Production Spurs Buildout of Flexible LPG/Ethane Export Capacity
A slew of LPG, ethane and ethylene export projects are underway along the Gulf Coast, a direct result of rising U.S. NGL production and generally flat domestic demand. Three of the projects will provide “flex” capacity of some sort — that is, the facilities will be able to shift between LPG and ethane exports or, in some cases, between ethane and ethylene. In today’s RBN blog, we review the history of U.S. LPG and ethane exports, why midstreamers have been struggling to keep up with export capacity, and how the ongoing addition of flex capacity is likely to play out.
