Natural Gas Liquids
Candlefocus EditorNatural gas liquids have a wide range of uses, such as in residential and commercial applications, for cooking and heating, as a chemical feedstock for creating plastics, and as components of several types of fuel. In the United States, a majority of the NGLs are used for gasoline, diesel and other combustible fuels.
However, there are a few disadvantages to using NGLs. One of the most significant is the cost associated with handling, storing, and transporting the liquids. As the molecules of NGLs are much heavier than the molecules of natural gas, they tend to settle and cannot be compressed as easily to transport, making them more difficult to manage.
Despite this disadvantage, the US has become an increasingly vibrant player in the export arena of natural gas liquids. The rise of liquids-rich shale formations in states such as Pennsylvania, Texas and Oklahoma, has greatly increased the US' ability to produce these gas liquids and, consequentially, its export capacity. In 2013, the US was responsible for 20% of the world’s exports, and most recently in 2019 exports exceeded 10 million barrels per day for the first time, making the US the third-largest exporter of natural gas liquids, behind only Qatar and Algeria.
Overall, natural gas liquids are a valuable and versatile by-product of natural gas extraction and refinement. With the US increasingly important role in their production, NGLs have become a more available source of fuel, feedstock, and even energy substitutes for many countries around the world, further establishing the US as a major energy exporter.