EIA: US exports of propane reached records in 1H26

Record US propane production has supported the rise in propane exports. Propane production, which is a byproduct of natural gas processing and crude oil refining, has increased rapidly over the past 10 years as US natural gas output has grown. Higher propane production has led to lower US propane prices relative to Asia, underpinning the record export levels.

Propane is consumed globally in the residential and commercial sectors for space heating and other uses. It is also used as a petrochemical feedstock to produce propylene and ethylene, key feedstocks in plastic production.

US propane exports surpassed 2 million bpd in April 2026 for the first time, driven by increased demand for petrochemicals and for importers seeking supplies to replace disrupted shipments from the Middle East. Favourable prices for US propane exports also outpaced competition in other regions. An expansion project by Enterprise, expected to be completed this year at the Houston Ship Channel and Nederland terminals, will increase capacity by another 300 000 bpd.

While US exports for propane have increased, trade flows have changed. In February 2025, China imposed a 10% tariff on propane imports from the US, which decreased demand for US exports of propane. China’s tariffs on US propane rose to 125% for the month of April 2025 before falling and remaining at 10% since May 2025. US exports of propane to China were down 28% in 2025, compared with 2024. In 1H26, US propane exports to China fell by 19% compared with January to June 2025.

Continued growth in propane exports could be constrained by export capacity limitations. In addition to these capacity limitations, ongoing drought conditions at the Panama Canal related to the El Niño weather effect are also curtailing current propane exports. Low water levels at the Panama Canal limit the number of ships that can transit the canal daily and increase the effective costs associated with the canal’s use. For propane exports that pass through the canal, these costs must be absorbed by buyers and sellers and could hinder US propane exports.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/02102026/eia-us-exports-of-propane-records-in-1h26/