Natural Gas Liquids (NGLs)

For several years, ESAI Energy has gathered and synthesized a wide range of public and private information on NGL production and consumption, reconciling often misleading terminology and conflicting viewpoints to develop an understanding of the global market for natural gas liquids.

The boom in shale gas and liquids in the United States and the potential for shale development in Canada and Mexico have completely changed the outlook for natural gas liquids (NGL) supply in North America. Meanwhile, natural gas supply growth in other parts of the world, such as the Persian Gulf and Asia, is contributing to NGLs production. This growth in liquids supply has not gone unnoticed by the global petrochemical industry where NGLs are influencing feedstock availability and choice as petrochemical demand continues to grow.

The convergence of rising NGL supply and rising petrochemical demand has created a perfect storm in the global NGL markets, presenting challenges and opportunities for the companies operating in these markets. In 2013, ESAI Energy published A Perfect Storm: Global Natural Gas Liquids Market Analysis 2013-2023. This study measured the magnitude and geography of the growth of each component of NGL supply and demand, and highlighted the main factors driving both. In regions where primary source data were unavailable and secondary source information was inaccurate, ESAI Energy developed estimates of supply and demand based on physical infrastructure, investment plans, underlying resource, and the regulatory structure governing these liquids.

Since 2014, ESAI Energy has published NGL Monthly Outlook.

ESAI Energy’s market based forecasts and insights assist companies in preparing for and profiting from what is coming next in the dynamic and complex NGL markets. ESAI Energy has the unique capability to understand what is happening in the US Market and place these developments in a global context. This service includes access to ESAI Energy’s NGL Expert Analysts for questions/discussion about NGLs in the US or globally and will keep midstream companies, traders and producers up-to-date on the latest trends and movements in the market as well as addressing:

  • Managing LPG surpluses. How much will be exported and where?
  • Understanding the naphtha and pentanes plus market. Tracking flows and projecting exports.
  • Managing the U.S. ethane surplus, and global markets for U.S. ethane.
  • Investments in NGL infrastructure including extraction, transport, and export capability

One year forecasts focused on the US are provided each month. Two year forecasts are provided in April and October, and five year forecasts in July. The April, July, and October forecasts will include global supply/demand datasets (by region), forecasts, analysis, and insight.

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