Impact of new offshore Louisiana natural gas production on the U.S. ethylene industry

The availability of natural gas and natural gas liquids (NGL) in Louisiana and the impact it has on the way U.S. ethylene producers look at expansion plans was discussed. Availability depends on natural gas production and refinery operations. Natural gas production accounts for approximately 75 per cent of the U.S. domestic NGL supplies. Strong domestic production of natural gas is important to NGL availability. Petral Worldwide's natural gas production was forecast to increase from 17.5 trillion cubic feet in 1997 to 20.8 trillion cubic feet by 2006. During this same time period, natural gas production in Louisiana will grow from 5.7 trillion cubic feet to 7.1 trillion cubic feet. A recent analysis of the quality and quantity of the natural gas that will be coming ashore in Louisiana suggests that it will be rich in NGL's. As for Louisiana's ethylene production potential, it was suggested that there will be a growing interest in ethane based ethylene plants in the Mississippi River Feedstock Service Area because of the growing demand for hydrogen which is used to desulfurize crude and motor fuels. 9 figs