This study analyzed the surge in associated gas production from the Permian and Appalachia regions to forecast NGL supply through a ten-year horizon. ADI evaluated the gap between rising ethane demand from a new wave of ethylene crackers and regional fractionation capacity constraints at major hubs like Mont Belvieu. The work emphasized the technical and economic drivers of ethane rejection and the role of micro-cryo units in managing flaring limits in infrastructure-constrained plays.
The client
Global midstream equipment manufacturer
The situation
Uncertainty regarding NGL takeaway capacity and fractionation limits in major shale plays risked misaligned product development for gas processing.
ADI’s contributions
Ethane rejection modeling
Analyzed regional spot price spreads between Conway and Mont Belvieu to forecast shifts in ethane recovery versus rejection across PADDs.
Infrastructure constraint mapping
Visualized pipeline takeaway gaps in the Delaware and Midland basins to pinpoint where new NGL headers would alter regional supply dynamics.
Gas processing plant sizing
Tracked a significant industry shift toward modular cryogenic plants and identifying the drivers for larger, more flexible facility designs.
Micro-cryo market sizing
Quantified the addressable market for small-scale modular units by analyzing flaring volumes and VOC regulatory limits in the Bakken.
Key outcomes
- Informed a growth strategy for modular gas processing units by identifying specific basins where flaring regulations exceed pipeline capacity.
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