Related Articles
Forward article link
Share PDF with colleagues

Plunge in NGLs prices add to US gas producers' woes

North American producers have, since the collapse in Henry Hub prices, relied on higher-value liquids to offset low natural gas prices, but the hedge is ending

Prices for ethane and propane fell 48% and 32%, respectively, in 2012, data released by the Energy Information Administration (EIA) shows, placing further stress on the already difficult economics of unconventional natural gas. Spot ethane prices hit an all-time low of $0.22.5 per gallon in December 2012, compared with $0.78/g at this time last year. Propane has fallen to $0.80/g from $1.39/g in the same period. Prices for secondary products butane, isobutane and natural gasoline also fell by 5-12% in the past year. This is bad news for struggling gas producers. Last year's Henry Hub average price of $2.77 per million British thermal units (Btu) was the lowest in a decade, according to the

Also in this section
Divided oil world
24 October 2016
The global crude supply landscape has transformed over the past two years, bringing some blessings and many curses for producers
A glimpse of recovery for distillates
24 October 2016
Falling runs and Middle East maintenance will tighten European distillate supply in Q4
Running the rule on US supply
20 October 2016
The head of the EIA discusses the market, the debate over fracking and what the future holds for the country’s energy data