Ethane prices were flat at 19 c/gal last week (vs its fuel value of 18 c/gal). Weexpect ethane to trade in line with its fuel value through ‘15. Longer term, weexpect ethane to trade at or near fuel value, or in the 25-30 c/gal range, basedon DB’s US Natural Gas price forecasts. While ethane supply/demandfundamentals are currently loose (ethane rejection is at a record 500-600kbpd), we expect fundamentals to get tighter in ’17 owing to increased demandfrom Enterprise Products ethane export facility (start-up 2H16) and start-up of6 greenfield ethylene crackers in ’17-’18. Reduced US drilling activity has thepotential to further tighten the ethane supply/demand balance.