Posted on 01/08/2013 7:23:43 AM PST by thackney
At least we’re not burning it off like we used to.
Alrighty, I admit it...I can’t understand a word of this. I don’t know what NGL is, something about natural gas? Does the article mean we have lots of gas but no one is buying it? Why is someone rejecting shale gas and who are they? Please, just a little help for those of us who are not conversant with terms of the petroleum world.
Extended natural gas flaring is getting quite rare in the US. It still goes on during initial well running before facilities get built out.
But regulations in most locations only allow it for an initial period. And many modern mineral royalties contracts now charge the producer for any gas that is removed from the reservoir. If they flare it or sell it, they still have to pay the royalty.
NGL = Natural Gas Liquids. The upshot of the article is that the cost of fractionation and transportation of ethane pretty much eats up any revenue the midstream operator may derive from it, so they’re saying “No, thanks!” to ethane streams. (Subject to revision and extension by others, of course. ;-) )
NGL is Natural Gas Liquids: Ethane, Propane, Butane, etc. It is not the same as LNG, Liquid Natural Gas which is methane cooled down to -260°F to make it liquid.
Does the article mean we have lots of gas but no one is buying it?
No. We do have a lot of new Natural Gas supplies hitting the market and holding down prices. Additional consumption of Natural Gas like Electric Power Companies have switched more to Nat Gas over coal and raised the consumption.
However, the article is talking about the NGLs, specifically ethane which often goes to the production of plastics. New manufacturing chemical facilities are being built but the supply of ethane from "wet" (with liquids) natural gas wells has risen faster than the plants have been built, driving down the price for ethane.
Why is someone rejecting shale gas and who are they?
It is not that type of rejection and it is not rejecting shale gas. It is talking about the production of liquids in a natural gas processing plant.
Please, just a little help for those of us who are not conversant with terms of the petroleum world.
I will be glad to answer questions as I can. I primarily posted this article in response to another comment talking about how natural gas production was affecting manufacturing in the US. These low prices are driving the building of chemical plants that use NGL's as feedstock to product polymers and the like used to make plastics.
bump
What gasses make up LNG?
What gas or gasses are extracted from shale? ...all that's in your chart?
Our marketing folks are hot on propylene right now; prices are good and the propane fraction in the Eagle-Ford is quite good.
Good thing about NGLs, material focus is highly flexible.
:: These low prices are driving the building of chemical plants that use NGL’s as feedstock to product polymers and the like used to make plastics. ::
Tru dat! We are building another 4 ethane trains in the Mont Belvieu area to add to the 6 we already have operating.
| Typical Composition of Natural Gas | ||
| Methane | CH4 | 70-90% |
| Ethane | C2H6 | 0-20% |
| Propane | C3H8 | |
| Butane | C4H10 | |
| Carbon Dioxide | CO2 | 0-8% |
| Oxygen | O2 | 0-0.2% |
| Nitrogen | N2 | 0-5% |
| Hydrogen sulphide | H2S | 0-5% |
| Rare gases | A, He, Ne, Xe | trace |
In its purest form, such as the natural gas that is delivered to your home, it is almost pure methane.
http://www.naturalgas.org/overview/background.asp
LNG, liquid natural gas is pure methane chilled to -260°F.
Depending on the shale formation we can get everything from crude oil, natural gas liquids to dry methane. Different shales have different mixes just like traditional fields can be nearly all oil, all natural gas or a mix with other liquids often referred to as condensate or NGLs.
So should I take from this that the low cost of raw material is causing a boom in the American plastics industry?
Five years ago while on a mission trip to rural Mississippi south of Memphis, I saw hundreds, if not thousands, of units of idle railroad rolling stock, virtually all of it bulk plastic containers. I assumed it was idle because the plastics industry was going overseas. Does this also mean that a good deal of that rolling stock will be reactivated?
Just what gases make up the gas that is piped into our homes and businesses?
- Mostly methane (96-98%) then ethane, propane and butane.
What gasses make up LNG?
- Ethane (C2) to Hexane (C6+) and “heavies” (>C6)
Rich gasses are extracted from shale Some shales yield richer gasses than others. They are fractioned into their constituent products using temperature and pressure changes (Midstream processing). Methane is sent to NG pipeline companies Like Kinder Morgan and TransCanada or sent to refracting companies like Valero for final “polishing” and delivery to chemical companies like Dow Chemical or BASF.
There is a big growth coming in the production of the feedstocks, making the polymers and plastic pellets that are used to make film/bag as well as harder injection molded plastics. I expect it will lower the price of those items.
Does this also mean that a good deal of that rolling stock will be reactivated?
I don't know the status and demand of the rolling stock.
Sorry, you are describing NGL, not LNG.
Thanks, reading too fast while at work.
I suspect you probably answered the question the poster meant to ask.
Those two are confusing even when spelled out.
Thanks for quick lesson in Natural Gas gentlemen.
Of course, all the polyethylene producers are "loving it" with their feedstock costs dropping like a rock.
Is this a trick question?
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