U.S. propane production rocketed to an all-time high for the second month in a row. As shown on the left-hand chart below, monthly U.S. 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. Not surprisingly, most of the increase in propane supply was 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 supply increased to 1,205 Mb/d in June, up 62 Mb/d from May. Monthly production for the region was 141 Mb/d, or 13.3%, higher than June 2022 and 56 Mb/d, or 4.9%, above the September 2022 record high for PADD 3. PADD 2 (Midwest) also set a new record for the second consecutive month with production rising to 414 Mb/d, which was 6 Mb/d higher than the May all-time high.
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- Analyst Insight
U.S. Propane Production Hits Another Record High
Monthly U.S. propane gas plant production for September 2023, as reported by the EIA on November 30, increased by 40 Mb/d to 2,084 Mb/d, which was 30 Mb/d, or 1.5%, above the prior record high in June 2023.
- Analyst Insight
U.S. Propane Production Declines From All-Time High
Monthly U.S. propane gas plant production for July 2023, as reported by the EIA on September 29, fell to 2,019 Mb/d, which was 35 Mb/d, or 1.7%, below what was recorded in June 2023. Total U.S. gas plant production was 107 Mb/d, or 5.7%, higher than output for the month in 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.
