Changes in Longitudes — The Four Barriers to Ethane Exports
It is a familiar refrain in the shale era. The U.S. produces more of a hydrocarbon commodity than it can use. This time we are talking ethane, a natural gas liquid that is experiencing production constraints mostly due to the inability of U.S. petrochemical plants to use more of the feedstock. So why not just export the surplus? Unlike crude oil there are no legal constraints on exports. Unlike natural gas, you don’t need a $10 billion plant to convert it to a liquid (LNG) – ethane is already a liquid. Unfortunately for many ethane wannabe exporters, ethane has its own infrastructure and market issues that must be resolved before it can be shipped overseas in significant quantities. Today we continue our blog series on the feasibility of overseas ethane exports.
