BHP Billiton

We estimate October 2014 Eagle Ford condensate production at 690 Mb/d and have identified 450 Mb/d of stabilization capacity that meets Bureau of Industry and Security (BIS) standards to classify the processed output as OK for export. That should make it possible for an estimated 230 Mb/d of processed condensate to be exported from the Gulf Coast in 2015. All that is needed to open the floodgates are more transport routes to export docks. Today we describe current and future routes planned by Enterprise to get segregated processed condensate to market.

Last week Eagle Ford producer BHP Billiton – apparently tired of waiting for a ruling from the Department of Commerce Bureau of Industry and Security (BIS) – decided to export a cargo of processed condensate that they have “self-classified” as refined product – meaning it is not subject to U.S. export restrictions on lease condensate and crude oil. That move followed BIS approval for Enterprise and Pioneer to make similar exports in July 2014 and could set off a posse of similar condensate exports by Eagle Ford producers.  Today we review new market options for condensate producers.