Ethane Prices Drop At Both Hubs
The improved prices for natural gas liquids (NGL) experienced throughout much of early 2013 provided producers and operators with an incentive to increase production, which has started to overwhelm the market once again.
Winter Erased Storage Overhang
The month of March was very good for natural gas producers, public utilities and pipeline operators, but it saw a downturn in heavy natural gas liquid (NGL) prices
Gas Prices Remain Solid As Cooling Demand Replaces Heating Demand
In the early part of spring, many Northeast residents went from heating their homes to cooling them at a similar usage level.
Natural Gas Storage Levels Fall Below Five-Year Average
The winter of 2012-2013 arrived late, but had a long-lasting effect as high heating demand has helped support propane and natural gas prices and drive storage levels below the five-year average for the first time in several years.
Light NGLs Continue To Outperform Heavy Counterparts
Light natural gas liquids (NGL) prices continued to gain strength as the spring approaches with supply-and-demand levels reaching equilibrium thanks to heating demand, increased fractionation and liquefied petroleum gas (LPG) export capacity.
Heating Demand Driving Natural Gas, Propane Prices Up
Colder-than-normal temperatures in the Northeast and Midwest continued to support natural gas and propane prices the week of March 13, as heating demand remained very high.
NGL Margins Moved Down In February
After showing improvements in January, natural gas liquids (NGL) frac spread margins took a downturn in February despite NGL prices holding firm in the month.
Propane Prices, Margins Improve As Export Capacity Increases
While these improvements are slow, they are reflective of the storage overhang slowly being worked off.
Ethane Supply-Demand Levels Reaching Parity
The reason for this change is that ethane rejection through much of the second-half of 2012 and early 2013 are having a positive effect at bringing supplies to meet demand levels.
Heavy NGL Prices Follow Crude Prices Downward
Light natural gas liquid (NGL) prices showed improvements the week of February 20, but the overall NGL barrel (bbl.) price decreased as crude prices have turned bearish the last few weeks.