NGLs Standing By – The Fractionation Crunch Continues, But Help Is on the Way

Fractionators at the Mont Belvieu hub operated at or near full capacity through the second half of 2018 as they struggled to deal with a deluge of mixed NGLs from the Permian and other key production areas. This situation — barely enough capacity to keep pace with rising demand for fractionation services — is likely to continue through 2019, even as a number of new fractionators come online. But NGL producers and the midstream sector are on the case: a slew of additional frac capacity has been announced since last fall, all of it slated to begin operation in 2020 or early 2021, and all of it backed by long-term contracts. Today, we discuss ongoing efforts to make the most of existing frac trains and to add new capacity pronto.



RBN Energy

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