NGL fractionation constraints
Posted: Mon Sep 17, 2018 9:17 am
https://rbnenergy.com/hotel-fractionati ... n-capacity
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So what happens if production continues to outpace fractionation capacity? Presumably, at some point, there is no more storage capacity for y-grade. How about exporting the surplus? That’s what happens with purity products like ethane and propane. While theoretically possible, exports of y-grade are extremely problematic — there are no appropriately configured docks or ships. Consequently, if storage is full, production must be curtailed. But here’s the catch: Y-grade gets produced as a byproduct along with associated and “wet” gas production. The only way to dial down y-grade production is to dial down the production of associated gas (which means pulling back on crude oil production), or to reduce wet gas production — or both."
Will NGL fractionation constraints (ie production of NGLs increasing but faster than fractionation capacity increasing) cause problems? If so, which of our companies will be affected, and how?
"
So what happens if production continues to outpace fractionation capacity? Presumably, at some point, there is no more storage capacity for y-grade. How about exporting the surplus? That’s what happens with purity products like ethane and propane. While theoretically possible, exports of y-grade are extremely problematic — there are no appropriately configured docks or ships. Consequently, if storage is full, production must be curtailed. But here’s the catch: Y-grade gets produced as a byproduct along with associated and “wet” gas production. The only way to dial down y-grade production is to dial down the production of associated gas (which means pulling back on crude oil production), or to reduce wet gas production — or both."
Will NGL fractionation constraints (ie production of NGLs increasing but faster than fractionation capacity increasing) cause problems? If so, which of our companies will be affected, and how?