As shown on the left-hand chart below, monthly propane gas plant production for January 2023 partially recovered from the weather-related curtailments in December. January propane production, as reported by the EIA on March 31, increased by 76 Mb/d to 1,866 Mb/d, which was 129 Mb/d, or 7.4%, above what was recorded in January 2022. However, production remains 94 Mb/d, or 4.8%, below the record high of 1,960 Mb/d set in September 2022. Not surprisingly, most of the drop in monthly propane supply has been in PADD 3 (Gulf Coast), which represents about 60% of total U.S. production. As shown on the right-hand chart below, Gulf Coast gas plant volumes increased to 1,085 Mb/d in January, up 30 Mb/d from December. January production for the region was 108 Mb/d, or 10.7%, higher than January 2022, but remains 64 Mb/d, or 5.6%, below the all-time high for PADD 3. Although the slow recovery of monthly propane production is concerning, we still expect strong growth in 2023 supported by new midstream infrastructure in the Permian Basin and Mont Belvieu.
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- Analyst Insight
Propane Production Increases Sharply
March propane production, as reported by the EIA on May 31, increased to 1,931 Mb/d, up 60 Mb/d from February and 100 Mb/d, or 5.5%, above what was recorded in March 2022.
- Analyst Insight
U.S. Propane Production Soars to Another Record High
U.S. propane production rocketed to an all-time high for the second month in a row. Propane gas plant production for June 2023, as reported by the EIA on August 31, increased by 75 Mb/d to 2,054 Mb/d, which was 191 Mb/d, or 10.3%, above what was recorded in June 2022.
- Analyst Insight
U.S. Propane Production Near All-Time High
With five new gas plants scheduled to come online by the end of 3Q23 and another four plants in the fourth quarter, the Permian Basin will add around 2 bcf/d of gas processing capacity by the end of the year which could increase propane supplies out of the region by up to 60-80 Mb/d.
