Reality Check for Global NGL Demand

OilVoice:
Global investment in ethane crackers and other olefins units will lead to overcapacity and intensifying inter-fuel competition in the NGL and naphtha markets, according to ESAI Energy’s newly published Global NGL Five Year Outlook. As ESAI Energy describes, announced projects include a potential 58 million tons of ethylene capacity, far more than global ethylene demand can plausibly grow. However, a closer look at what will pan out leads to the unmistakable conclusion that feedstock demand growth and pricing will be less bullish than many believe.