NGLs

NGLs, or natural gas liquids, are hydrocarbon liquids recovered from natural gas processing streams. They include ethane, propane, butanes (n- and i-butane), and pentanes plus, often referred to as natural gasoline. They are separated and marketed separately from methane.

They form when gas containing liquids is produced; processing removes impurities and demethanizes; the resulting NGL mix is then fractionated into individual components at dedicated plants.

NGLs are transported by pipeline, rail, and marine terminals; Mont Belvieu, Texas, is a major pricing and storage hub in the United States; global trade involves shipments to and from North America, with different regional hubs.

Uses: Ethane is primarily a petrochemical feedstock for ethylene; propane and butanes are used as fuels and as petrochemical feedstocks; pentanes plus serve as solvents and blending components. NGLs are valued for both energy content and chemical feedstock potential.

Market and economics: NGL prices track crude oil and natural gas markets and are sensitive to supply-demand dynamics and pipeline capacity; environmental and safety considerations include handling of flammable liquids and emissions from production and transport.