Natural gas liquid (NGL) frac spreads followed their NGL price movements this past week, as every NGL frac spread margin was up this week aside from C5+, the lone NGL to fall in price this week.
Despite increased natural gas liquid prices, higher natural gas feedstock prices helped to push down frac spread margins in most cases in the month of December.
Decreases in natural gas feedstock prices helped to increase natural gas liquid frac spread margins or, in some cases, cushion the fall. Feedstock prices at Conway were down 6% while feedstock prices at Mont Belvieu were off 8% from last week.
Natural gas liquids (NGLs) prices dropping for the most part and natural gas feedstock prices increasing at both Conway and Mont Belvieu, NGL frac spread margins were largely down at both hubs. The lone exception was ethane, which was up 6% at Conway and 1% at Mont Belvieu.
The first month of 2010 was a strong showing for natural gas liquids (NGLs) frac spread margins in Mont Belvieu, as margins were up across the board throughout the month. Conway margins were also healthy, with only two smaller drops in margins for propane and butane souring margins at the hub.
Conway frac spread margins were weaker this week than their Mont Belvieu counterparts, as prices for natural gas liquids fell further in Kansas. The biggest drop in margin at both hubs was ethane, which was down 13% at Conway and 11% at Mont Belvieu.
Heavy decreases in natural gas feedstock prices improved the natural gas liquids frac spread margins at both Conway and Mont Belvieu this week, with the exception of Conway ethane. Natural gas feedstock prices fell 12% at Conway and 13% at Mont Belvieu, which lowered the price to under US$5 per million Btu at each location.
Frac spread margins fell throughout the month of February as both natural gas feedstock prices and natural gas liquids (NGLs) prices dropped during the course of the month. Only two heavier NGLs – butane and C5+ – posted margin gains over the course of the four weeks.
Mont Belvieu natural gas liquids (NGLs) frac spread margins were more improved this week than their Conway counterparts, although the two largest margin improvements for any single NGL were both recorded at Conway.
Despite a continued drop in natural gas feedstock prices, natural gas liquids (NGLs) fractionation spreads lost traction this week as there was an even split among NGLs losing and gaining margin strength this week at Conway and Mont Belvieu.
Decreases in natural gas liquids (NGLs) prices resulted in frac spread margins dropping for all NGLs aside from C5+, which was also the lone NGL to experience a price increase this week.
The continued drop in natural gas feedstock prices helped natural gas liquids frac spread margins at Mont Belvieu showed improvements and lessened the drop for Conway margins while improving several other margins.