Alberta crude oil and condensate production for April was little changed from March, declining by only 22 Mb/d to average 4.492 MMb/d, and was up 162 Mb/d year-over-year, according to monthly data released by the Alberta Energy Regulator on May 29.
Keyera’s Q1 2026 report and conference call on May 14 provided updates on projects already underway, the re-start of its iso-octane facility, and some color on longer-term growth opportunities.
Output of naphtha range material such as plant condensates and natural gasoline in the Ohio section of the Utica shale is increasing rapidly as new processing and fractionation capacity in the region comes online. Output of field condensate from the wellhead is also expected to take off in 2014. These light hydrocarbons will be delivered to market by a combination of pipeline, rail and barge infrastructure. Today we look at pipeline infrastructure plans to deliver condensates and natural gasoline to Canada as diluent.
Supplies from the three main branches of the US condensate family are increasing faster than demand can keep up. Field condensate production from shale basins is nearing 1 MMb/d - headed to 1.6 MMb/d by 2018. Plant condensate – aka natural gasoline - will increase from just over 0.3 MMb/d in 2013 to more than 0.5 MMb/d in 2018. Because field condensates cannot be exported to overseas markets, more of this material will be refined traditionally or using a splitter – pushing out existing refinery demand for natural gasoline and creating an excess of naphtha range material. Petrochemical demand for natural gasoline has dried up in the face of cheap ethane feedstocks. Canadian demand for natural gasoline as diluent will soak up some but not the entire natural gasoline surplus. With US gasoline demand declining, the only outlet for excess naphtha and natural gasoline will be more exports (beyond Canada). Today we look at changing condensate demand patterns.
