NGL 101- The Basics - EIA
NGL 101- The Basics - EIA
NGL 101- The Basics - EIA
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<strong>NGL</strong>’s from Natural Gas<br />
Importance of Gas Supply Estimates to <strong>NGL</strong> Forecasters<br />
In a low gas price environment, <strong>NGL</strong> value is a key<br />
component of cash flow for gas producers<br />
<strong>NGL</strong> volume available for extraction depends on:<br />
� Amount of gas available to processing plants<br />
� How much <strong>NGL</strong> is contained in the gas that is produced<br />
<strong>NGL</strong> volume actually extracted depends on:<br />
� Process technology employed for <strong>NGL</strong> extraction<br />
� <strong>NGL</strong> prices at the plant, net of transportation to market<br />
� Economics of recovering ethane<br />
� Processing contract terms<br />
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