NPRA '11: Profit-hungry natgas producers will target more NGLs

29 March 2011 19:34  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Low prices for natural gas will encourage energy producers to target reserves that hold relatively high levels of natural gas liquids (NGLs) such as ethane, a consultant said on Tuesday.

Such NGLs will fetch higher prices, boosting margins for the producer, said Brian Habacivch, senior vice president of Fellon-McCord, an energy consultancy.

Habacivch was speaking at the Petrochemical Forum at the International Petrochemical Conference (IPC), which was held by the National Petrochemical & Refiners Association (NPRA).

The US is already producing more NGLs, Habacivch said. "We will likely produce more NGLs going forward."

US ethylene producers predominantly use ethane as a cracking feedstock. Their margins, in turn, have increased as much of the world cracks oil-based naphtha instead.

Hosted by the NPRA, the IPC continues through Tuesday.

By: Al Greenwood
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