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
What does a balanced oil market mean?
19 July 2016
Supply and demand might come back into line this year, but without the kind of price rises the industry hopes for
Casualty of the inferno
8 July 2016
Damage spreads across supply chain
Banking on China
8 July 2016
Asia’s big markets aren’t growing. New ones are needed