02-23-2013, 09:26 AM
My last rookie attempt at "google" journalism :>)
This is discussing condensate pricing in the Eagle Ford region of the US. The timeframe was July of 2012. You can see that they define "condensate" as having an API gravity of 50+.
http://eaglefordshale.com/news/eagle-for...te-weaker/
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The average posted condensate to crude discount this year was close to $17/Bbl.
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….there are 3 principal markets for condensate: (a) sale as crude oil, (b) sale as diluent for heavy crude blending, and © processing in a splitter and sold as component products. Refiners find condensate less attractive as a crude oil blend because it produces less of the valuable middle distillate blends. The diluent market is attractive but requires shipment to Canada. Some of the Eagle Ford condensate is being shipped south to Corpus Christi by pipeline and then by barge up the Gulf Coast to St James LA and on up the Capline pipeline to Canada. Midstream players in the Eagle Ford are also developing condensate processing facilities. At the moment, however, we can see from Plains All American posted prices that refiners are paying less for Eagle Ford condensate than they do for crude and then applying a gravity adjustment factor to reduce the price they pay for condensate even further.
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Condensate has an API gravity of 50+ and falls between natural gas liquids and crude oil on the hydrocarbon spectrum.
This is discussing condensate pricing in the Eagle Ford region of the US. The timeframe was July of 2012. You can see that they define "condensate" as having an API gravity of 50+.
http://eaglefordshale.com/news/eagle-for...te-weaker/
*********
The average posted condensate to crude discount this year was close to $17/Bbl.
*********
….there are 3 principal markets for condensate: (a) sale as crude oil, (b) sale as diluent for heavy crude blending, and © processing in a splitter and sold as component products. Refiners find condensate less attractive as a crude oil blend because it produces less of the valuable middle distillate blends. The diluent market is attractive but requires shipment to Canada. Some of the Eagle Ford condensate is being shipped south to Corpus Christi by pipeline and then by barge up the Gulf Coast to St James LA and on up the Capline pipeline to Canada. Midstream players in the Eagle Ford are also developing condensate processing facilities. At the moment, however, we can see from Plains All American posted prices that refiners are paying less for Eagle Ford condensate than they do for crude and then applying a gravity adjustment factor to reduce the price they pay for condensate even further.
**********
Condensate has an API gravity of 50+ and falls between natural gas liquids and crude oil on the hydrocarbon spectrum.