Soaring crude and natural gas production amid expected low ethane rejection levels are set to drive NGL production in the Permian Basin above the 1.2 million b/d offtake capacity by September this year (see Market Watch – Issue 6).

  • Some 1.8 million b/d of pipeline capacity are scheduled to come online over the next two years, but the majority will not enter service before Q2-2019.
  • Hence, prices are likely to come under pressure, in particular in Q1-2019.
  • This could be exacerbated should mid-streamers decide to convert NGL to crude pipelines before new capacity comes online.