Low NGL Prices Perplex Producers, but Chemicals Industry Reaps Bargains

SUGAR LAND--January 27, 2015--Researched by Industrial Info Resources (Sugar Land, Texas)--The epic boom in North American shale gas development has unleashed a rapid growth in facilities related to the production and processing of natural gas liquids (NGL), with more than $27 billion worth set to begin construction in the U.S. and Canada this year. But with NGLs such as ethane, propane and butane hitting the market in large quantities, NGL producers now must face the specter of a supply glut, which likely will continue to suppress prices, and thus, margins. Within this article: Details on the NGL market, including its effect on the petrochemicals industry and on projects in plays such as Utica and Marcellus.