Since production has been able to get so far ahead of the midstream and the downstream, it has created a low-price environment for NGL. NGL storage inventories are high, causing record low valuations for NGL vs. crude oil.

While  midstream infrastructure is finally  catching up with shale production, the downstream components remain a few years out from providing a lifeline for the gas and liquid markets. “Producers and midstream players can recover, transport and fractionate the NGLs, but those individual products either have to be absorbed by domestic NGL markets or they have to be exported,” said Peter Fasullo of EnVantage.

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