EIA: U.S. Propane Exports at Record High in H1 2026


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- U.S. propane exports surged to all-time highs in the 
first half of 2026, bolstered by expanding domestic natural gas liquids 
production and petrochemical demand from East Asia, Energy Information 
Administration (EIA) reported Thursday (10/1).

   Propane shipments surpassed 2 million bpd the first time ever in April, 
reached 2.1 million bpd, and have continued at levels well above the five-year 
average since, helped particularly by exports to India, the EIA said.

   Favorable U.S. prices for propane and increased demand for petrochemicals 
from buyers seeking to replace disrupted Middle East shipments have been 
catalysts for this, the EIA observed.

   Higher natural gas output over the past decade has also enabled more propane 
production, pushed U.S. prices lower relative to Asia and underpinning exports.

   But U.S. trade flows in propane have also shifted due to Chinese tariffs, 
the EIA observed. China imposed a 10% tariff on U.S. propane imports in 
February 2025, briefly hiking them to 125% in April 2025 before returning to 
10% in May 2025.

   Consequently, U.S. propane exports to China fell 28% in 2025 compared with 
2024 and dropped another 19% in the first half of 2026 compared with the same 
period in 2025.

   The EIA cautioned that future export growth could be constrained by terminal 
capacity limitations and ongoing Panama Canal transit restrictions. Drought 
conditions tied to El Nio have lowered canal water levels, it noted, limiting 
daily ship transits and raising effective transit costs that must be absorbed 
by buyers and sellers.

   To support rising export volumes, an expansion project by Enterprise 
expected to be completed this year at the Houston Ship Channel and Nederland 
terminals will add 300,000 bpd of export capacity, the EIA said.

   Terminal capacity is maxed out until Enterprise completes its expansion, 
while El Nino-driven drought at the Panama Canal drives up transit costs and 
forces shippers to absorb higher freight premiums to reach key Asian buyers.




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