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
Oil prices—is the worst over?
17 October 2017
Supply-demand balances are tightening and sentiment is turning, but the next two quarters will be decisive
What future for renewables investment?
22 September 2017
Cutting subsidies from clean-energy projects has hurt banks and private equity investors – but there are still opportunities
US oil output set to reach record high
18 August 2017
The country's production has surged this year and is showing no signs of a slowdown