U.S. NGL production climbed to a record 7.5 MMb/d in 2025, up from 7.0 MMb/d in 2024, marking a new all-time high (left graph). The increase was led by ethane. Ethane production rose from 2.9 MMb/d in 2024 to 3.1 MMb/d in 2025 — an 8% year-over-year increase — compared with roughly 5% growth in other NGLs. As a result, ethane’s share of the NGL barrel moved up (right graph), reaching about 41.5% in 2025, continuing a multi-year climb from just under 38% in 2019.
Most of the incremental barrels came from PADD 3, particularly the Texas Inland and New Mexico sub-PADDs — in other words, the Permian. Ultra-low and at times negative regional gas prices made maximum ethane recovery economically compelling. With gas takeaway constrained, producers had every incentive to strip out as much ethane as possible: recovering ethane reduces residue gas volumes that must compete for limited pipeline egress, while Y-grade NGL takeaway capacity has been far less constrained. The result was a sharp lift in ethane extraction and a new record for total U.S. NGL supply in 2025.
