August 14, 2020 – Natural Gas Intelligence
EIA Says U.S. Ethane Production to Grow at Steady Clip Through 2021
By Kevin Dobbs
A rebound in demand for ethane as a key feedstock for petrochemical manufacturing should fuel production growth through 2021, according to the Energy Information Administration (EIA).…
Read the full article here: https://www.naturalgasintel.com/eia-says-u-s-ethane-production-to-grow-at-steady-clip-through-2021/
…Prices for NGLs, however, started recovering during the second quarter, particularly ethane, as new U.S. petrochemical plants opened operations and as economic activity more broadly resumed, the EIA said. International petrochemical demand also gained momentum in recent months, supporting ethane prices and encouraging increased production.
Ethane priced at roughly a $1.00 premium to natural gas “has given natural gas processing plant operators an incentive to recover more ethane from the raw natural gas stream and ship that ethane to the Gulf Coast for consumption or export,” EIA said. Ethane is one of the few petroleum products that had a higher average price in July than in January, data indicated.
In a recent report, RBN Energy LLC President David Braziel said the boost in demand is bolstering the need for increased production and resulting in a “higher price for ethane.”