May 2, 2016 – Kallanish Energy
NGL prices in Appalachia ‘on the way back’
Prices for natural gas liquids in Appalachia are “on the way back,’ and are expected to trend up over the next eight quarters, participants in a Stratas Advisors webinar last week maintained.
“There will be a substantial recovery of thane [in the next eight quarters] – the one consistent growth purity product liquid,” according to Greg Haas, director of Integrated Oil and Gas for Stratas, and contributor/moderator for “Appalachian NGLs – Monetizing the Opportunity.”…
Read the full story here: http://www.kallanishenergy.com/2016/05/02/ngl-prices-appalachia-way-back/
…Strong propane market
Appalachian propane likewise has a strong market in North America, according to Haas, with propane dehydrogenation units (PDH units, which produce propylene for plastics-making) “could consume 400,000 BPD of propane if all the facilities announced are built,” according to Haas.
Between 2015 and 2018, five new U.S. PDH plants are expected online – producing over 9 billion pounds of propylene annually — consulting firm RBN Energy projects.
“We’ll actually see a drop in propane exports due to local [Appalachian] use and due to the drop in production due to low prices,” according to Haas.
Looking at liquefied natural gas (LNG) exports, specifically from the west coast of the U.S. and Canada, Haas only expects one West Coast LNG export facility to be online between 2020-2025.
Two projects, Jordan Cove in Oregon, and the Prince Rupert Island project on the west coast of British Columbia, were Haas’s favorites as most likely to be built. Each has run into various obstacles and currently “are up in the air,” he said.
