ADI Analytics developed ethane pricing forecasts and strategic implications to support a midstream client’s annual planning process.
The client
A midstream oil and gas company seeking to understand ethane price dynamics under various market scenarios.
The situation
The client needed a robust view of ethane supply, demand, and pricing outlooks to inform near- and medium-term planning decisions, including infrastructure utilization and commercial strategy.
ADI’s contributions
Supply and rejection modeling
Estimated ethane supply and rejection volumes across multiple oil and gas price decks.
Demand forecasting
Modeled ethane demand through U.S. crackers and export markets under different growth scenarios.
Cost curve analysis
Assessed the cost of ethane supply based on fractionator capacity utilization.
Price scenario development
Forecasted ethane pricing under varying commodity price assumptions.
Strategic planning support
Provided insights and implications for integration into the client’s annual planning workshops.
Key outcomes
- ADI’s work enabled the client to align its internal forecasts and planning scenarios with market fundamentals and infrastructure constraints.
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