Over the past 18 months, Gulf Coast dock capacity capable of handling either LPG or ethane has grown significantly. It’s something relatively new called “flex capacity,” and it’s a darned good thing it’s online. Without it, both LPG and ethane export capacity would already be maxed out. That would leave U.S. producers with no ability to increase exports — or production that depends on those exports — by another single molecule. As it is, flex capacity is allowing both the LPG and ethane export markets to continue growing, at least for now. But how that flex capacity is allocated between LPG and ethane will have an increasingly important influence on exports and ultimately on the flow dynamics of both markets. In today’s RBN blog, we’ll review how rapidly LPG and ethane exports have grown, how flex export facilities work, the impact of export capacity constraints we are seeing in the markets today, and what all of that means for the next phase of U.S. LPG and ethane export growth.
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LPG and Ethane Exports Soar
As shown in Figure 1 below, U.S. exports of LPG and ethane have expanded dramatically over the past several years, with almost all of that growth occurring on the Gulf Coast. The left graph shows U.S. LPG exports, with the green layer showing exports from PADD 3 (Gulf Coast) and the blue layer showing LPG exports from the other PADDs, mostly from Energy Transfer’s Marcus Hook terminal on the East Coast and AltaGas’s Ferndale facility on the West Coast. Similarly, the orange layer in the right graph shows ethane exports from the Gulf Coast and the purple layer shows ethane exports from elsewhere (again, from Marcus Hook). U.S. LPG exports have more than doubled from about 1.2 MMb/d in 2018 to 2.6 MMb/d so far in 2026 (for an 11% compound annual growth rate, or CAGR), while ethane exports have climbed even faster, from roughly 0.25 MMb/d to nearly 0.7 MMb/d (13% CAGR) over the same period. About 90% of that growth has come from PADD 3, underscoring the Gulf Coast's position as the epicenter of the world’s NGL export market.
About the song
“Last Friday Night (TGIF)” was written by Katy Perry, Lukasz Gottwald, Max Martinand Bonnie McKee and appears as the second song on Katy Perry’s third studio album, Teenage Dream. The song is about waking up the day after a wild party the night before. Marc Klasfeld directed the video for the song, which features guest appearances by Rebecca Black, Kenny G and a hilarious Corey Feldman as Perry’s father. Released as a single in June 2011, it went to #1 on the Billboard Hot 100 Singles chart and has been certified 6X Platinum by the Recording Industry Association of America (RIAA). Personnel on the record were: Katy Perry (vocals, guitar, piano), Dr. Luke (drum programming), Max Martin (keyboards, drums, programming) and Lenny Pickett (saxophone).
Teenage Dream was recorded between October 2009 and April 2010 at Conway, Henson, Rocket Carousel, and The Boom Boom Room in Los Angeles; Playback in Santa Barbara, CA; Silent Sound and Triangle Sound in Atlanta; Studio at the Palms in Las Vegas; and Ric the Mic in New York City. Produced by Max Martin, Dr. Luke, Benny Bianco, C. “Tricky” Stewart, Stargate, Greg Wells, Sandy Vee, and Ammo, the album was released in August 2010. It went to #1 on the Billboard 200 Albums chart and has been certified Diamond (10 million copies sold) by the RIAA. Six singles were released from the LP.
Katy Perry (Kathryn Elizabeth Hudson) is an American singer, songwriter and television personality. She released her first album, the gospel Katy Hudson, at 16 in 2001 to little success. After relocating to Los Angeles, she signed with Capitol Records and released her debut album with them, One of the Boys, in June 2008. The album went 3X Platinum, fueled by the success of the hit single, “I Kissed a Girl.” Alternative artist Jill Sobule had a charting single with the same title in 1995. Perry has released seven studio albums, one compilation album, seven EPs and 43 singles and has sold more than 151 million records worldwide. She has won five American Music Awards, 16 ASCAP Pop Music Awards, a Brit Award, and seven MTV Video Music Awards. Perry served as a judge on American Idol from 2018 to 2024. She has appeared in six motion pictures and two documentaries. Perry continues to record and tour, and is currently on tour in Europe on her Out of Office Tour.
"About the Song" -- written by Mickey McMahan , RBN Director of Musicology