Ethane

U.S. natural gas is about to enter a cycle of structural oversupply and demand stagnation, which in turn should reduce prices, according to Morgan Stanley.

Seven organizations have filed a joint protest with the Pennsylvania Department of Environmental Protection (DEP) strongly urging the agency to deny air permit exemptions that Shell Pipeline Co. LP has requested for its Falcon Ethane Pipeline System, which is being developed to feed the multi-billion dollar cracker under construction in the state.

Global petrochemical giant Ineos said Tuesday it plans to invest more than $3 billion to build a world scale ethane cracker and propane dehydrogenation unit in northwest Europe to take better advantage of U.S. natural gas supplies.

The Pennsylvania Department of Environmental Protection (DEP) has sent three technical deficiency letters asking Shell Pipeline Company LP to address gaps in its water obstruction and encroachment permit applications for the Falcon Ethane Pipeline System.

U.S. natural gas liquids (NGL) production from plants set a record in 2017, averaging 3.7 million b/d and has nearly doubled since 2010, the Energy Information Administration (EIA) said in a research note Tuesday.

Shell Chemical Appalachia LLC continues to plow ahead on its multi-billion dollar ethane cracker in western Pennsylvania, with nearly all of the foundations completed for the 200 structures that will form the self-contained site and major equipment arriving regularly, an executive overseeing the project said Monday.

State Sen. Andrew Dinniman has asked the Pennsylvania Public Utility Commission (PUC) to post all public comments to the official online docket as his case against Sunoco Pipeline LP, which has stopped service on Mariner East (ME) 1 and some construction on ME 2 and 2X, advances.

Multiple oil pipelines are preparing to carry more of the Permian Basin’s roaring production to faraway markets, but capacity issues remain for liquids and in particular for natural gas, which could lead to a complete gas blowout by this fall and require flaring or shut ins, according to analysts.

U.S. natural gas liquids (NGL) production is expected to grow by around 15% year/year — to average just under 4.3 million b/d — in 2018 and shows no signs of slowing as the market seeks to rebalance itself and refill inventories following “impressive declines” in recent months, Raymond James & Associates Inc. analysts said.