Tuesday, 01/22/2013

Over the past week (Jan 13-20, 2013) the ethane-to-gas ratio has recovered slightly from 0.99 to 1.05, mostly due to a 3 cnt/gal increase in the price of purity ethane at Mont Belvieu (OPIS 24.5 cnts/gal).  [See today’s Spotcheck “Ethane to Henry Hub Gas Ratio” graph.  Click here if you have trouble accessing Spotcheck.]   But that does not change the fact that the ethane market is still deep in ethane rejection territory.  What does it mean for gas processing economics?  And how do different gas streams impact NGL recoveries, ethane rejection and tailgate gas volumes.  That’s what we’ll examine today.