Ngl basics january 2017
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Transcript of Ngl basics january 2017
USA WOGA Liquids Review (NGL’s)Gregg Dighero, Director, NGL Marketing
Encana Services Company Ltd.Denver| January 31| 2017
NGLs, LPGs and Purity Products
NGLs seem to exist in the twilight zone between crude, the basis of all petroleum products, and natural gas. NGLs are neither here nor there. They possess, to differing extents, characteristics of both oil and gas and have values and market drivers both similar to and distinctly separate from oil and gas.
Source: RBN Energy
What are NGL’s
NGL Products and Physical Properties
Product Structure Abbreviation BTU/gallonVapor
Pressure @ 100 degrees
Ethane C2 66,340 800
Propane C3 91,563 188.62
Iso Butane IC4 99,630 72.644
Normal Butane
NC4 103,740 51.567
Natural Gasoline
C5+ ~110,000 15.567-20.474
Hydrocarbon Uses / NGL Sources
84%
16%Source: EIA 2018 Forecast
NGL Barrel
Product
Ethane (C2)
Propane (C3)
Butanes (IC4 & NC4)
Pentanes (C5+)
Demand Type
Petrochemicals
Heating, Power Generation & Agriculture
Refineries
Exports
Supply Demand
Natural Gas Liquid Uses
Source: Encana, EIA
Propane Autogas
Mt. Belvieu NGL Values
Janu
ary-10
April-1
0
July-
10
Octobe
r-10
Janu
ary-11
April-1
1
July-
11
Octobe
r-11
Janu
ary-12
April-1
2
July-
12
Octobe
r-12
Janu
ary-13
April-1
3
July-
13
Octobe
r-13
Janu
ary-14
April-1
4
July-
14
Octobe
r-14
Janu
ary-15
April-1
5
July-
15
Octobe
r-15
Janu
ary-16
April-1
6
July-
16
Octobe
r-16
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
$110.00
NYMEX Crude NYMEX Natural Gas Ethane Propane Iso ButaneNormal Butane Natural Gasoline
Mt.
Bel
vieu
Pro
dcut
s $/
MM
Btu
$/B
AR
REL
NYM
EX C
RU
DE
U.S. Natural Gas Liquids
7
Production Forecast
Source: EIA
Natural Gas LiquidsMajor NGL Pipelines
8
Mont Belvieu
Conway
Sarnia
Marcellus
WesternCanada
Hobbs
South LA
SkellyMedford
Midwest
Primary Hub
Secondary Hub
Flow Direction
Bakken
West Rockies
Existing Pipeline
East Rockies
Source: Encana, EV Maps
Enterprise MAPL
EnterpriseATEX
ONEOKSterling
DCP Sand Hills
Enterprise Eagle Ford
EnterpriseTEPPCO
Enbridge Southern LightsEnbridge Alliance
Kinder Morgan Cochin
ONEOKBakkenLateral
Enterprise Dixie
SunocoMariner West
Enterprise Front Range
ONEOKOverland En
terp
rise
MAP
L
SunocoMariner East
Y-Grade
Demethanized Mix
Raw Make
NGL Fractionation Process
Source: Encana, Genscape
10%2%
14%
1%
14%
48%
2%
8%
Mont Belvieu
Conway
Sarnia
U.S.CanadaShare of Total Capacity
%
NGL Infrastructure OverviewFractionation Capacity by Region
Edmonton
NGL Storage
Source: Encana, Genscape*Estimate based on company reports and assuming 1 barrel of ethane yields 100 lbs. ethylene, and includes announced plants that may not necessarily come online.
2%
7%
76%U.S.Canada
5%
Total potential North American ethylene cracking capacity is about 117 billion pounds per year (equivalent to approximately 2,300* Mbbls/d of ethane)
Ethylene Cracking CapacityBy Region
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gas Oil
Naphtha
Butane
Propane
Ethane
Low natural gas prices make ethane more competitive in the feedslate compared to its other oil based competitors.
Percent
USA Natural Gas Liquids Low Cost Ethane Preferred by Steam Crackers
Source: Jacobs
Petrochemical ProductsThings we use everyday……..
Petrochemical ProductsThings we use everyday……..
EthaneC2H6
EthyleneC2H4
Polyethylene(C2H4)n
PropaneC3H8
PropyleneC3H6
Polypropylene(C3H6)n
PropaneC3H8
PropyleneC3H6
BenzeneC6H6+ Cumene
C6H6.C3H7
PropaneC3H8
PropyleneC3H6
BenzeneC6H6
+ CumeneC6H6.C3H7
PhenolC6H5OH
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020 20250.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
2,000.0
Plant Condensate(Natural Gasoline)
LPG(Propane & Butane)
Ethane
U.S. Natural Gas Liquids
16
NGL Exports
Global markets will be instrumental in balancing NGL supplies
MMbbls/d
Source: EIA
+400%
U.S. Natural Gas Liquids17
Mont Belvieu
Source: Encana Fundamentals
East Coast
West Coast
LPG Import and Export Terminals
ExportImportIdle
• The U.S. has become a net exporter of LPGs (propane and butanes) over the past several years
• Export capacity is expected to grow significantly over the next several years to serve European and Latin America.
• The Panama Canal expansion now allows shorter access of LPG cargoes to make their way to Asia
LPG Export Facilities & Expansions
Company Status OnlineDate
Capacity (Mbbls/d)
Gulf CoastEnterprise Existing Online 140
Targa Existing Online 40
Enterprise (Ph. 2) Existing Online 115
Targa (Ph. 1) Existing Online 60
Targa (Ph. 2) Expected Online 60
Enterprise (Ph. 3) Expected Online 50
SXL Mariner South Expected Online 200
Occidental Unlikely Online 150
Targa (Ph. 3) Unlikely Online 80
Enterprise (Ph. 4) Expected Online 206
Phillips 66 Freeport Expected Online 145
Moss Lake Unlikely 2018 150
East CoastMarcus Hook Existing Online 17
Mariner East I Expected Online 65
Mariner East II Expected 2H2017 200
Total Existing/Expected: 1,168
Source: EIA
USA Natural Gas Liquids Propane Exports
QUESTIONS?