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NGL 101- The Basics - EIA

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<strong>NGL</strong>’s from Gas - Processing Economics<br />

Gas Plant Profitability Metric – “Frac Spreads”<br />

<strong>The</strong> gas plant equivalent of a refinery “crack<br />

spread”<br />

Measure of gross profitability for gas plants<br />

Calculated as the difference between the<br />

revenue from sales of <strong>NGL</strong>’s contained in a gas<br />

stream as liquid and their value if left in the gas<br />

pipeline and sold at gas prices<br />

22

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