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.
More insights
Catching up to China on critical minerals
The U.S. government is spending real money on critical minerals right now. On August 7, 2026, the Department of Energy launched a $100 million program to train more mining engineers. It’s one of several moves happening at the same time, alongside price guarantees, tariffs, and new sourcing rules. None of it changes the basic picture: […]
Middle East conflict’s fallout more limited than expected
Part of ADI Analytics’ ongoing coverage of the implications of the Iran conflict across oil & gas, LNG, refined products, and chemicals. Analysts have been quick to predict permanently altered LNG trade flows, structurally different chemical markets, and a new global energy order following the Iran conflict. Several months into the conflict, the evidence points […]
Japan vs. South Korea: SAF projects diverge
Japan and South Korea are moving from aspirational sustainable aviation fuel (SAF) targets toward blending mandates. In July 2026, Japan announced plans to mandate a 1% SAF blend in fiscal year (FY) 2030, rising to at least 3% in FY2031 and 5% or more from FY2032–34. South Korea announced its phased SAF mandate in 2025, […]