A Robust Competitive Analysis On NGL Feedstocks

The US shale boom has produced absolutely huge quantities of NGLs. Several US domestic cracker projects are still in the planning and execution phase and are not expected to be online until 2020. This has created enormous levels of oversupply and ethane is currently worth more as natural  gas than as liquid ethane.

As the price of crude has dramatically decreased, ethane has lost its competitive advantage over naphtha. This should be bad news for ethane producers and production should slow; but according to the EIA ethane production for the past four months has averaged an all time high.

Demand for ethane as a feedstock for the petrochemical industry will rise considerably as new ethane cracking capacity comes online, through 2017-2020. Supply levels still dictate that export is being very strongly considered and that new markets are being explored.

The National Hub Fully Led By US And European, Chinese, Indian And Brazilian NGLs Producers And Petrochemical Companies To Lay Down Feedstock Strategies For 2016


Evaluate The Rising Competitiveness Of Naphtha Over Ethane:
How Is The Drop In Crude Prices Affecting Global Ethane Supply &
Demand Dynamics?

Quantify US NGL Feedstocks Demand In China, Europe And Mexico:
Hearing Updates On Cracking Capacity From Leading Petrochemical
Companies From These Countries

Define The Business Case For Flexible Crackers:
Assess The ROI For Flexible Cracking Units In Volatile Oil & Gas Price

Identify The Most Competitive NGL Feedstock:
Comparing Cracking And Logistical Costs For Ethane, Naphtha,
Propane And Butane

Determine The Global Market Opportunities For US Derivatives:
Measure The Business Potential For ethylene And propylene In
China And Europe Based On Local Demand Projections From Plastics And
Resins Producers


  • Establishing cost breakdown for cracking ethane vs. naphtha vs. propane vs. Butane
  • Identify the most lucrative global markets for each of these feedstocks, both inside and outside the US, with a particular focus in China, India, Brazil and Europe
  • Understand  the logistical cost implications for ethane vs. naphtha vs. propane vs. butane


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