Natural gas processing plants are being built or expanded at a feverish pace. At least 90 projects are in the works around the U.S., expected to add more than 15 Bcf/d of capacity according to the latest Bentek NGL Facilities Databank numbers. How do the economics of these investments work? We know that it is a lot more complicated than a simple frac spread. But does that mean the calculations must be exclusively the purview of engineers armed with gas plant optimization models? Heck no. Anybody, even an MBA with a spreadsheet, a few standard factors and a gas analysis can figure out how a gas processing plant makes money. So to prove that point today we’ll dive one more time into natural gas processing economics to understand how the composition of an inlet gas stream is converted to outlet streams of natural gas liquids and residue gas.
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