U.S. propane inventories posted a larger-than-expected draw as exports rebounded and Gulf Coast stocks pulled back from last week’s record high. Total inventories remain 17% above the five-year average heading into the seasonal draw period.
The Permian is the country’s largest NGL-producing region, and its output is expected to keep growing. By 2035, the basin is forecast to account for 53% of U.S. NGL production. Handling that growth will require a complex network of pipelines, fractionators and other infrastructure.
U.S. propane inventories climbed more than expected, with Gulf Coast stocks reaching a record high, while exports fell sharply. Total inventories remain 19% above the five-year average as the market moves toward the seasonal draw period.
The EIA reported a total U.S. propane/propylene inventory draw of 1.2 MMbbl for the week ended September 18, with essentially all of it out of PADD 3 and driven by rising reported exports.
U.S. propane inventories posted a counterseasonal 1.4-MMbbl draw. Stocks remain historically high, but continued draws or below-normal builds could quickly narrow the surplus ahead of the winter heating season.
Wolf Midstream announced it is moving forward with a Phase Three expansion of its NGL North system in Alberta.
U.S. propane inventories reached an all-time high as a larger-than-expected build lifted Gulf Coast stocks to record levels.
Keyera Corp. announced it was reducing its 2026 guidance for Marketing segment realized margin by CAD$40 MM, citing a two-week unexpected outage on Enbridge's Line 5 pipeline, and lower than expected utilization at its Alberta EnviroFuels facility (AEF) following its re-start this spring
A counterseasonal draw pulled U.S. propane inventories lower as exports and product supplied increased, but stocks remained well above historical levels.
U.S. propane inventories climbed to a second consecutive record as Gulf Coast and Midwest stocks accounted for approximately 92% of the weekly build. If inventories continue building at a similar pace, total stocks could approach 119 MMbbl by early October.
