MRO Magazine

PIRA Energy Group Releases New Study: The Global Impact of NGL Supply Growth

September 28, 2015
By Business Wire News


PIRA Energy Group, a leader in global energy market analysis, announced today the official release of its latest industry study, “The Global Impact of NGL Supply Growth: PIRA’s Comprehensive Outlook to 2035.” With the North American shale revolution has come a surge in NGL production. Over the last 10 years, production has grown by nearly 75%, such that United States production is now equivalent to the next four largest producers combined. Substantial growth in ethane and LPG is set to continue despite currently weak oil prices, affecting markets worldwide and capturing demand in North America, Europe and Asia.

In developing the total view of NGLs, PIRA’s study provides a rigorous analysis of the U.S., Canada and other key producing regions, such as the Middle East and FSU. PIRA ‘s comprehensive, by-country analysis of the NGL upstream sector — in the context of its ongoing analysis of global oil and natural gas markets — considers access to project funding, government sanctions and supports, internal markets, as well as the impact of recent low oil prices. This study brings together the key supply/demand and trade trends for each major region and major producing country.

These shifts in global supply, demand and trade will have profound impacts, reaching beyond LPG and ethane markets. They will affect upstream oil and gas economics, as well as downstream pricing for naphtha, gasoline and other oil products, in turn impacting petrochemical feed choices and investments, refining margins and runs, and even crude oil production.

PIRA has put together a team of its internal experts led by Rick Joswick, Managing Director of Global Oil at PIRA, and including Alpman Ilker, Senior Director, and Dr. James Mason, Director, of PIRA’s Global NGL Group. The research team also includes Consulting Senior Advisors Ken Otto, formerly head of NGL for Purvin & Gertz, and Nancy Lin, formerly responsible for ExxonMobil’s NGL industry outlook, each of whom has over 30 years of experience. This team of seasoned experts allowed PIRA to develop detailed global balances for ethane, propane and butane, a database that is unmatched in the industry.

According to Joswick, “With this growth in supply, NGLs must price themselves to find sufficient demand. That in turn displaces naphtha from petrochemical/other demand and leads to a cascade of changes all through the oil barrel.”

Gary Ross, PIRA’s Executive Chairman and Head of Global Oil, adds “There is a casual understanding of the emerging trends around NGLs, but that’s just not good enough for companies to take advantage of this opportunity. Industry participants and investors need a clear, consistent and global framework to get it right.”

“The Global Impact of NGL Supply Growth” offers a written report of the study findings and the bases underlying those results. There is also a comprehensive database providing historical data back through 2010 and forecasts through 2035. Finally, study buyers will be able to participate in an online workshop scheduled for October 6, 2015. This workshop will also be recorded and made available via online video.

“There is a casual understanding of these trends but that’s just not good enough to take advantage of this opportunity. Analysts need a clear, consistent and global framework to get it right.”

The release of this study signals a significant investment in the ongoing analysis PIRA provides to its NGL retainer clients. PIRA’s intelligence now features a longer time horizon, international supply and demand trade tables by country, and detailed demand breakdowns across major market sectors. It also includes long-term implications of major trends, U.S. sub-regions by play, and a trade flow matrix featuring freight rate projections in key trade routes.

About PIRA Energy Group

Established in 1976, PIRA is one of the leading energy market analysis firms, providing the total view of the energy market so its clients can make the best business decisions possible. Currently, more than 500 companies located in 60-plus countries retain PIRA. These entities include international integrated majors, national oil and gas companies, independent producers, refiners, marketers, oil and gas pipelines, electricity and gas utilities, major industrials, airlines, trading companies, financial institutions, and government agencies.

For more information about the study, visit

PIRA Energy Group
Chief Marketing Officer
Jeff Mancini, +1-646-448-6369