SIC 1321 Natural Gas Liquids

Contenidos

• NAICS CODE(S).
• FURTHER READING.

SIC 1321

This category includes establishments primarily engaged in the production of liquid hydrocarbons from oil and gas field gases. Establishments recovering helium from natural gas and establishments recovering liquefied petroleum gases incidental to petroleum refining or to the manufacturing of chemicals are classified in a range of chemical and allied product manufacturing industries.

NAICS CODE(S)

211112

Natural Gas Liquid Extraction

Natural gas liquids (NGL) are often found in association with crude oil production. NGL is a reservoir portion of natural gas that is stripped out as a liquid at the surface by special processing facilities. NGL typically contains 35 percent ethane, 30 percent propane, 17 percent natural gasoline, 12 percent butane, and 6 percent isobutane. NGL should not be confused with natural gas, which is composed primarily of methane. NGL is denser than natural gas and becomes combustible at different concentrations than methane, according to the American Gas Association. NGL is also different than liquefied natural gas, a condensed natural gas that is compact and therefore convenient for overseas shipping.

NGL appears in a gaseous state at normal temperatures and pressures. It is removed from the gas stream at an extraction plant when the gas is processed. With most modern extraction techniques, up to 90 percent of the NGL can be recovered from the gas stream. After the NGL is extracted, it is mixed together and transported to a fractionation center, where it is divided into individual gas products. The two largest centers are located in Texas and Kansas. Furthermore, Texas, the Gulf of Mexico Federal Offshore, New Mexico, Oklahoma, Louisiana, and Wyoming together accounted for 87 percent of all NGL production throughout the early 2000s. In addition, the 20 largest gas processing companies controlled 75 percent of NGL production.

The chemical industry accounts for roughly half of the total demand for NGL products. NGL is used as feedstock to produce chemicals and plastics. One common product, called ethylene, is composed of 75 percent NGL. Analysts expect worldwide demand for NGL to rise significantly through the year 2010 because of feedstock usage, especially in the manufacturing of ethylene.

The Clean Air Act bolstered butane demand by requiring gasoline composition to include 12 to 15 percent more oxygen. Methyl tertiary butyl ether (MTBE), which has a high oxygenate...