US 2016 NGL production revised lower: EIA

OREANDA-NEWS. February 10, 2016. The Energy Information Administration (EIA) revised its forecast for 2016 NGL production slightly lower this month as low commodity prices persist.

The EIA's latest estimate for 2016 NGL production stands at 3.45mn b/d, up 180,000 b/d from 2015, as expansions and new infrastructure are completed. However, February's estimate is 0.6pc lower than January's forecast, as NGL prices remain weak following declines in crude and RBOB.

"Expected additions of natural gas processing and distribution infrastructure contribute to forecast HGL production growing at a faster pace than the natural gas streams from which it is produced," according to the report.

Ethane and butane accounted for the majority of the February revisions to the forecast. The EIA lowered its total 2016 ethane production estimate to 1.24mn b/d in February, down from the 1.25mn b/d predicted in January. The butane production outlook was revised down by 10,000 b/d for the first quarter. However, the EIA is forecasting an uptick in ethane production during the latter half of 2016 to 1.31mn b/d in the fourth quarter, as new cracking capacity allows for less rejection.

The EIA continues to show on average 1.1mn b/d of NGL exports in 2016 and an average of 1.3mn b/d exported in 2017.