Frac Spread: A Comforting Start To The Year

Jan 10 17:01 2019 Print This Article

NGL prices rose to begin the year, natural gas prices continued to fall and margins continued to widen, i.e., a comfort food kind of week for the frac spread.

The chicken casserole (deemed most comforting by Southern Living) equivalent was Mont Belvieu, Texas, ethane, which rose by 2.8% but saw its margin almost double since the close of 2018 to nearly 9 cents per gallon. Demand is up as ethylene plants return to operations following outages, EnVantage Inc. analysts wrote in a report.

Ethane is also competing well globally as an ethylene feedstock despite lower crude oil prices, which would be expected to push demand for naphtha. From that perspective, things look pretty good.

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Oil and Gas Investor

OilandGasInvestor.com is your complete source for information about the financial world of oil and gas. An interactive, searchable version of Hart Energy Publishing's Oil and Gas Investor Magazine, this site also provides online content from OGI This Week and A&D Watch. In addition to providing daily analysis of trends and industry events, their editors interpret the news to highlight opportunities for investors. Since 1973, the company has been recognized for its expert coverage of the global energy industry through its highly respected, award-winning magazines, newsletters and directories, conferences, consulting services and online resources. With representation in the upstream, midstream, and downstream sector, Hart Energy takes the lead in providing original and timely data through its numerous products and services.

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