LP Gas

Wet natural gas production still on the increase

Natural gas producers have targeted wet gas in recent years for the higher value of its liquids content.

This wet gas, with its prices traditionally linked to crude oil, includes natural gas liquids (NGLs) propane, ethane, butanes and natural gasoline.

According to a report from the U.S. Energy Information Administration (EIA), wet natural gas production has been increasing at a faster rate than dry natural gas production.

Liquids extracted from wet natural gas at gas processing plants accounted for 5.2 percent of the volume of marketed production in 2013, up from a low of 4.5 percent in 2008, EIA reports. September 2013 represents the highest liquids share of monthly production on record, at 5.5 percent.

Also of note in the EIA report, between 2008 and 2013, volumes of liquids produced from wet natural gas grew at an average of 7 percent annually. Most of these increases were centered in the Gulf Coast.

The increased production has driven down NGL prices, particularly of propane and ethane.

NGL production from refineries has slowed.