alkylite

NGL volumes continue to climb because of all the surging “wet” shale gas production.  These days about 7% of gas plant NGL production is “isobutane”, (also known as IC4, I Grade, methylpropane, R600a, iso and “izo” to our friends in Canada).  Over the past two years gas plant production of iso is up about 25%, and that volume is expected to increase another 30% over the next two years.  Most isobutane is used by refineries to make high-octane alkylate, but what about the rest?  Today we take a closer look at this lesser known natural gas liquid (NGL) and the sometimes exotic uses it is put to.

Natural gas liquids trading is quite unlike natural gas or crude oil.  Natural gas is natural gas.  It is a truly fungible commodity.  Crude oil varies widely in quality, but it is still crude oil.  Not so, NGLs.  Each of the five NGLs has different physical characteristics, different end-use mar