New territory for NGL pipelines

Even though the NGL pipeline industry appears mature, new geographic territory exists for expansion of NGL pipelines. However, the most fertile territory that must be pursued is the collective opportunities to better link the existing NGL industry. Associations like the Gas Processors Association can not perform the role demanded by a need to share information between the links of the chain on a more real time basis. The Association can not substitute for picking up the phone or calling a meeting of industry participants to discuss proposed changes in policies and procedures. All stakeholders must participate in squeezing out the inefficiencies of the industry. Some expansion and extension of NGL pipelines will occur in the future without ownership participation or commitments from the supply and demand businesses. However, significant expansions linking new supply sources and demand markets will only be made as the supply and demand businesses share long-term strategies and help define the pipeline opportunity. The successful industries of the twenty-first century will not be dominated by a single profitable sector, but rather by those industries which foster cooperation as well as competition. A healthy NGL industry will be comprised of profitable supply businesses and profitable demand businesses, linked together by profitable pipeline businesses