About Natural Gas Liquids
Natural gas liquids are used as petrochemical feedstocks, home heating fuels, refinery blending and agricultural crop drying. These natural gas liquids, or NGLs, include ethane, propane, normal butane, isobutane and natural gasoline.
Natural gas is a two-part hydrocarbon made up of a light gas component (methane) and a heavier gas liquids component. When separated from the light gas, the resulting NGLs are valuable and marketable.
As a versatile source of energy, propane is the most common NGL. It can be used as a fuel in the home, as an alternative fuel for vehicles, for diverse agricultural applications, and for a broad variety of industrial and commercial uses. These uses range from refrigeration to forklift fuel in confined areas and petrochemical uses in the manufacture of numerous consumer products.
SemGroup's Involvement
SemGroup® Corporation contributed its SemStream®, L.P. business into NGL Energy Partners LP in November of 2011. SemGroup Corporation holds a significant amount of equity in NGL Energy Partners and an interest in its General Partner as well. All assets of SemStream, L.P. were incorporated in this contribution, excluding the SemStream Arizona Propane subsidiary.
SemStream Arizona, a wholly-owned subsidiary, keeps the energy moving to over 12,000 residential customers. This network of more than 200 miles of underground pipelines and storage provides propane services to the central portion of Arizona.