Appalachian natural gas processing capacity vital for increased natural gas production, EIA says

The processing capacity in the Appalachian region plays a key role in increasing the production of natural
gas and natural gas plant liquids (NGPL), the U.S. Energy Information Administration (EIA) said in a recent report.

Processing capacity in the region has grown considerably over the last few years in an effort to keep up with increased production. These natural gas processors separate natural gas from NGPL and contaminants such
as water, carbon dioxide, and sulfur. NGPLs, which include ethane, propane, butane and natural gasoline,
can be sold at higher prices than their natural gas heat value.

EIA estimates that natural gas processing capacity in Kentucky, Ohio, Pennsylvania and West Virginia has grown from 1.1 billion cubic feet per day (Bcf/d) to 10.0 Bcf/d between 2010 and 2016.

Between January 2010 and May 2017, natural gas production in those states increased from 2.0 Bcf/d to 22.9 Bcf/d and NGPL production increased from 106,000 barrels per day (b/d) to 621,000 b/d. EIA estimates that production continues to grow in the region.

Newer processing plants use new technologies such as compressors and chillers, which cool natural gas to extremely low temperatures. Fractionation must be used to separate NGPLs. The region has seen an increase in fractionation capacity of 41,000 b/d in 2010 to nearly 850,000 b/d in 2016. According to EIA estimates, it could reach 1.1 million b/d in 2019.

Because of the high levels of ethane in Appalachian natural gas requires, most plants extract ethane separately from other NGPLs to manage pipeline natural gas heat content. De-ethanization capacity in the Appalachian region has grown from none in 2010 to more than 200,000 b/d in 2016. It may reach 350,000 b/d by 2019.