U.S. propane stocks are now almost even with last year after a fourth straight weekly draw. Strong exports have nearly erased a surplus that stood at 12.8 MMbbl in early September.
The Permian, the world’s largest NGL-producing region, is poised for continued growth across the NGL value chain. With domestic demand offering limited room to grow, can downstream infrastructure keep pace? Today, we examine the projects helping turn rising Permian production into global supply.
Western Canada saw large drops in LPG inventories in September, especially butanes, according to data released by the Canadian Energy Regulator on October 15.
U.S. propane inventories have fallen 3.8 MMbbl in three weeks, the steepest decline for this period in at least a decade, as strong exports pull Gulf Coast stocks lower. The surplus to last year has shrunk to 2.7 MMbbl and could disappear as soon as next week.
NGL prices pulled further ahead of natural gas over the past month, pushing the frac spread to $7.80/MMBtu on October 19, up 36% from a month earlier.
U.S. propane inventories posted a second straight draw, led by a 1.9-MMbbl decline on the Gulf Coast. Total stocks remain 14% above the five-year average, but the surplus sits entirely in PADD 3, while Midwest stocks have slipped below the five-year average heading into winter.
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.
