Primer on Propane and Its Relationship to Crude Oil & Natural Gas
From time to time, we write about propane--the "other" NGL produced in the Marcellus/Utica "wet gas" region. When M-U drillers sink a well, methane is the number one hydrocarbon that comes out of the hole. But in certain areas in southwestern PA, eastern OH, and the northern panhandle of WV, other hydrocarbons come out of the hole along with methane. Being heavier than methane, they are referred to as natural gas liquids (NGLs). The primary NGL produced in the M-U region is ethane. Ergo Shell has built a $6 billion-plus cracker plant to leverage our region's abundance of ethane. After ethane, the next most plentiful NGL is propane.
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