Over the past two weeks, the average price of non-TET propane (traded in Enterprise storage) has averaged 2.6 c/gal below TET propane (Energy Transfer), well below the 0.9 c/gal average for 2025. As shown in the left figure below, since April 2025 that differential averaged between 0.5 c/gal and 1.7 c/gal.
This is not simply some arcane NGL differential that makes little difference to propane markets. It is a key aspect of the propane export market, since the largest volume of physical propane exported is sourced from locations priced at the average Non-TET price, while the TET price index is typically used for hedging of source barrels for propane export cargos.
The right graph shows the monthly average differential in summer (Apr-Sep, orange) and winter (Oct-Mar, blue) over the past 8 years. Generally, the differential tends to favor TET in the summer and non-TET in the winter, but the pattern is highly volatile. Market players are monitoring this differential carefully to insure that propane hedging programs are not hit by unexpected Mont Belvieu price behavior.
