The volatile energy markets of the past few months have resulted with ethane prices $1/mmbtu below the natural gas price. Despite the low ethane prices, the margin for cracking heavier feedstocks such as propane and butane, is superior to the margin of ethane. Ethane had long been the advantaged feedstock at the cracker. This Insight looks at whether the propane and butane advantage is a short-term phenomenon or are the current relative cracking margins here to stay.
This report includes 1 file(s)
Volatile Prices Challenging Ethylene Cash Cost Norms, Are Changes Here to Stay? PDF - 326.82 KB 4 Pages, 0 Tables, 4 Figures
This NGL Insight report highlights a key issue surrounding this topic, and discusses the implications for those involved.
For market participants, suppliers, and advisors who need to look at current industry trends, risks and issues around this topic, this report gives you an expert point of view to help inform your decision making.
Wood Mackenzie provides detailed commercial and strategic insight into the North American NGL markets. Our data-rich analysis is driven from our integrated energy and petrochemicals research, which gives you a regional and national perspective on ethane, propane, butanes and pentanes.
From gas processing to exports, we help you to understand the future direction of the NGL markets and make key decisions.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...
Insight | Dec 2014
Volatile Prices Challenging Ethylene Cash Cost Norms, Are Changes Here to Stay?
Have questions? Just let us know how to contact you and we will respond to you as soon as possible.