DOE natural gas liquids primer highlights growing ethane production projections
A primer of natural gas liquid (NGL) resource potential, focused on Appalachia, demonstrates that projections for ethane projection from two shale regions are significantly higher than previously estimated.
The report, produced by the U.S. Department of Energy (DOE), updates a 2017 report with the same focus utilizing a reference case and forecasts from the Energy Information Administration (EIA). Those figures identified near-exponential growth in Appalachia’s natural gas production and set high hopes for its future gains. In fact, the EIA has projected that natural gas production in the East region that encompasses the Appalachian Basin, will quadruple by 2050.
Natural gas includes both ethane and propane, of which the region contains a significant resource pool, something experts hope to see tapped into in the next 30 years. Specifically, Appalachian NGLs production is projected to increase over 700 percent from 2013 to 2023.
The report details major industry investments in natural gas and NGLs infrastructure that will support the boom in Appalachian production in the coming decades.
“NGLs storage and midstream infrastructure are of particular importance to the region because produced volumes do not align with the high seasonal variability in demand and often exceed pipeline takeaway capacity, which presents further investment opportunities using ethane as a feedstock,” the report said.
The primer also highlighted research and development opportunities for the area related to natural gas and NGLs production, conversion, and storage.
