NGL prices rose almost across the board last week, accompanied by a slew of widening frac spread margins. The hypothetical NGL barrel at Mont Belvieu, Texas, was up 3.8% and the corresponding barrel at Conway, Kan., rose 5.6%.
Not since mid-February have ethane prices cracked 24 cents per gallon (gal) at Mont Belvieu and 21 cents/gal at Conway. The spread moved into positive territory at both hubs and while rejection levels are still high, En*Vantage Inc. expects ethane inventories to drop over the next six months, reaching 43.2 million barrels by July. The estimate for January was 50.1 million barrels.