US ethane production reached record in May 2024 | Hydrocarbon Engineering

Oct 29, 2024

Save to read list Published by Callum O'Reilly, Senior Editor Hydrocarbon Engineering, Tuesday, 29 October 2024 09:30

US ethane production increased steadily over the last decade and reached a record of 3 million bpd in May 2024. Ethane production in the first half of 2024 (1H24) averaged a record 2.8 million bpd, according to data from the US Energy Information Administration (EIA)’s ‘Petroleum Supply Monthly’. The increase was driven by more natural gas and ethane production in the Permian Basin, which spans Texas and New Mexico.

Ethane serves mainly as a petrochemical feedstock to produce ethylene, which is used to make plastics and resins. Continued growth in ethane consumption in the global petrochemical sector, increasing proportions of ethane derived from US natural gas production, and favourable production economics have driven steady increases in ethane production in recent years.

In the US, almost all ethane is recovered at natural gas processing plants, which remove ethane and other natural gas plant liquids (NGPL) from raw natural gas. During 1H24, US marketed natural gas production, which includes dry natural gas and NGPLs before they are separated out, averaged a record 112.8 billion ft3/d, 1 billion ft3/d more than the 1H23 average.

Ethane production in the Texas Inland and New Mexico refining districts, which include the Permian Basin, accounted for 62% of US ethane production during 1H24, slightly more than the 60% share in 1H23. Ethane production in these two districts averaged 1.7 million bpd in 1H24, a 7% (0.1 million bpd) increase from 1H23. Ethane production in the Appalachian No. 1 refining district, which straddles most of the Appalachian Basin production area in Pennsylvania and West Virginia, also increased during 1H24, averaging 327 000 bpd, up from 292 000 bpd in 1H23. Ethane production in other refining districts remained essentially unchanged from 1H23.

US ethane production continued increasing to meet growing demand from domestic and international consumers. Consumption of ethane in the US in 1H24 averaged 2.3 million bpd, up from 2.1 million bpd in 1H23, while US ethane exports averaged 470 000 bpd, down 17 000 bpd compared with 1H23. The US began exporting ethane in 2014 to petrochemical plants in Canada and became the world’s largest exporter of ethane in 2015, when tanker exports to Europe began. The most common destinations for ethane exports in 1H24 were China (45% of US ethane exports; 212 000 bpd), Canada (15%; 70 000 bpd), and India (14%; 65 000 bpd).

In the EIA’s ‘Short-Term Energy Outlook’, it expects ethane production to average 2.8 million bpd in both 2024 and 2025, a 5% increase compared with 2023. The EIA expects domestic ethane consumption to average 2.3 million bpd in both 2024 and 2025, a 5% increase compared with 2023. The EIA expects US net ethane exports to rise to 490 000 bpd in 2024 and 520 000 bpd in 2025, an 11% increase from 2023 to 2025.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/29102024/us-ethane-production-reached-record-in-may-2024/

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