Growth potential in gas plant ethane production and the impact on propane import trends

In varying degrees in most ethylene plants, ethane and propane are used interchangeably as feedstocks. During the next five years, several new ethylene plants will be built in the Gulf Coast area. Most of these plants will be based on LPG feedstocks and will have some flexibility to operate with ethane and propane feedstocks. The completion of new ethylene plants will increase feedstock demand for ethane by 65--90 Mbpd by 1998 and by an additional 50--80 Mbpd by 2000. Thus, the availability of ethane will have a significant impact on Gulf Coast waterborne propane import requirements. Sustained growth in the gas processing industry's ethane recovery capability will effectively minimize waterborne propane import requirements for the next five to ten years. Petral Worldwide's approach to feedstock supply analysis highlights investment opportunities in domestic supply sources. Projects of these types will also limit a growth dependence on NGL feedstock supplies from politically unstable supply sources in North Africa and the Middle East. This paper examines the potential for growth in the gas processing industry's ethane recovery capability and the impact on Gulf Coast feedstock markets