Just to be clear: with gallon is meant a US gallon (3.785 liter) and moreover at 15 oC (60 oF).
Ethane liquid density at 15 oC is 355 kg/m3 or 2.96 lb/gal, so an ethane price of say 23 cents/gal = 7.8 cents/lb = 17 cents/kg.
In case anybody wondered: Figure #1b gives the Ratio of Ethane price versus Natural Gas (HH = Henry Hub), both expressed in $/MMBtu.
Ethane price was 23 cents/gal on July 22 at Mont Belvieu (Texas) and even lower at other places.
HHV (Higher Heating Value) of ethane is 22300 Btu/lb, so an ethane price of 23 cents/gal corresponds to 3.5 $/MMBtu.
Natural gas price (Nymex spot market) closed at 3.78 $/MMBtu this Friday July 25.
So at 23 cents/gal a few days ago the Ratio Ethane/NaturalGas was less than 1.
As can be seen from Figure #1b the ethane heating value price has been only slightly higher than that of natural gas for more than a year, so the economics are presently rather poor to justify separating ethane from natural gas.
What the Ratio, and thus the economics of ethane recovery, will be in future is anybody's guess.
Edited by PingPong, 27 July 2014 - 07:24 AM.