Ethane prices picked up this week as light NGLs showed greater strength, if not higher values, than their heavy counterparts for the second straight week at both Mont Belvieu and Conway.
NGL prices continued to fall for the eighth straight week at both Conway and Mont Belvieu as limited transportation and cracking capacity, increased processing capacity and falling crude oil prices are having negative effects on the market.
Ethane prices moved in opposite directions between Mont Belvieu and Conway as the Gulf Coast price rose 7% while the Mid-Continent price fell 22%, which pushed its frac spread into a negative zone.
Enterprise Products Partners LP (NYSE: EPD), Anadarko Petroleum Corp. (NYSE: APC) and DCP Midstream LLC announced a joint venture to build the 435-mile Front Range natural gas liquids (NGL) pipeline in the DJ basin.
Ethane prices fell at both hubs this week due to several ethane crackers remaining down because of scheduled maintenance combined with weak propane prices.
There is concern that propane could overtake ethane prices as the most preferred petrochemical feedstock due to the propane storage overhang. However, increased propane exports should alleviate this concern.
Natural gas liquid (NGL) prices were relatively flat this past week as they followed crude oil prices, which have been in a holding pattern the last two weeks.
Natural gas liquids (NGL) prices and frac spread margins made gains the week of Feb. 29 as prices continued to stabilize and rebalance. Frac spread margins also benefitted from the continued depression of natural gas prices.
Ethane prices continued to improve this week as the market prepared for scheduled maintenance turnarounds for several large fractionators in the Gulf Coast this spring.
Ethane prices rebounded at both hubs this week on the back of the news that ConocoPhillips’ Gulf Coast Fractionators ONEOK Partners’ Mont Belvieu fractionator will undergo maintenance in April and May.