U.S. propane inventories posted a smaller-than-expected 817-Mbbl build, while PADD 3 stocks reversed course with a counter-seasonal draw—even as weekly exports declined.
U.S. petrochemical steam cracker economics are in strange territory with propane yielding a higher margin than ethane for the production of ethylene and other petrochemicals
U.S. propane inventories reached their highest level recorded for the same reporting week, led by record PADD 3 stocks, while production declined for a third consecutive week.
Ethane continues to lead net petchem margins in July, while propane has more than tripled from a year ago and natural gasoline remains negative.
EQT’s $77 million purchase of Blackline Midstream gives the Appalachian producer direct control of New England’s largest bulk-propane storage network.
A sizable U.S. propane build lifted total stocks to nearly 100 MMbbl and pushed PADD 3 inventories to a record high.
The frac spread edged lower in July but remains about 20% above year-ago levels, with propane and natural gasoline continuing to provide the largest contributions.
The ethane ratio-to-natural gas has been on a wild ride during 2026. In late January when the price of natural gas soared in response to Winter Storm Fern, the ethane-to-gas ratio was crushed to the lowest level in at least 20 years.
Over the past 18 months, Gulf Coast dock capacity capable of handling either LPG or ethane has grown significantly. It’s something relatively new called “flex capacity,” and it’s a darned good thing it’s online. Without it, both LPG and ethane export capacity would already be maxed out.
U.S. propane production has trended lower since early May, while the margin above the previous five-year maximum for inventories has continued to narrow despite another inventory build.
