Rick R. Haun, E. E. Ellington, Ken W. Otto Purvin & Gertz Inc. Dallas
The effects of recent U.S. clean-air legislation on NGL demand and pricing will sustain future gas-processing economics at attractive levels. This will remain true despite a projected decline from the recent surge in gas-plant profitability.
Demand for all NGL products will be firm throughout the 1990s. Increased requirements for butane as methyl tertiary butyl ether (MTBE) feedstock will strengthen butane prices. Higher base-load requirements for propane in new NGL-based olefin plants will also have a positive impact on propane prices.