Spurred by relatively high values of natural gas liquids (NGL), company interests have shifted from dry gas production to wet gas production, according to the US Energy Information Administration’s monthly gas liquids report. Gas prices have stayed low in recent years due to increased supply. The Henry Hub spot price averaged $3.73/MMbtu in 2013 and $2.75/MMbtu in 2012, reducing profit margins for many gas producers . NGL prices, as being traditionally linked to crude oil, are set at a significant price premium over pipeline-quality dry gas. According to EIA data, more recently, the gas plant liquids composite spot price —which approximates a value of NGL produced at processing plants—has hovered roughly halfway between WTI crude oil and gas spot prices. This liquids price premium has resulted in a faster growth rate of wet gas production compared with that of dry gas. Liquids extracted from wet gas at processing plants […]