In a pricing twist not seen since 2019, TET propane jumped to a 7.5 c/gal premium over non-TET on Wednesday (11/19) and averaged 6.5 c/gal for the week. This isn’t some obscure NGL spread with little real-world impact — it goes to the heart of how propane is traded. The TET index (the price in Energy Transfer storage) underpins more than 80% of propane hedging, while the non-TET price (the price in Enterprise storage caverns) dominates the physical market and is widely used in pricing formulae for production, exports, petrochemicals and domestic retail propane supply.
This decades-old vestige of early propane markets is rarely a problem. As shown in the left graph below, for the past eleven years, non-TET has averaged 0.34 c/gal (about one-third of a cent) below TET, and the differential is quite stable. Until 2024, the annual average had never been above +.2 c/gal or below -.7 c/gal.
