A slew of LPG, ethane and ethylene export projects are underway along the Gulf Coast, a direct result of rising U.S. NGL production and generally flat domestic demand. Three of the projects will provide “flex” capacity of some sort — that is, the facilities will be able to shift between LPG and ethane exports or, in some cases, between ethane and ethylene. In today’s RBN blog, we review the history of U.S. LPG and ethane exports, why midstreamers have been struggling to keep up with export capacity, and how the ongoing addition of flex capacity is likely to play out.
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Before the Shale Era, the U.S. was a net importer of LPG (propane and butane); however, the U.S. began exporting LPG in earnest in the late 2000s as domestic production soared without a corresponding increase in domestic demand. The increasing exports quickly led to bottlenecks and very soon export terminal capacity was maxed out. What followed was a massive buildout in terminal capacity. Figure 1 below shows the evolution of LPG export levels — the stair-stepping black line shows annual average exports and the orange line shows monthly exports.
Figure 1. U.S. LPG Exports. Source: EIA
As propane and butane production increased, so too did ethane output. The initial increases in ethane production were met with a wave of new Gulf Coast steam crackers (plus one in western Pennsylvania) specifically designed to use ethane as the feedstock for making ethylene (along with other petrochemical byproducts), which then gets transformed into polyethylene and other plastics. The first of these exports occurred out of Energy Transfer’s Marcus Hook terminal near Philadelphia. In its first full year of operation (March 2016 to March 2017), Marcus Hook, with export capacity of 70 Mb/d, exported 30 Mb/d of ethane to Europe. Enterprise Product Partners’ Morgan’s Point terminal near Houston was the next to start up in September 2016 with a capacity of 240 Mb/d.
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About the song
“Hot to Go!” was written by Chappell Roan and Daniel Nigro and appears as the seventh song on Chappell Roan’s debut studio album, The Rise and Fall of a Midwest Princess. The new wave synth-pop song has a kinship to Toni Basil and Lene Lovich and utilizes a cheer for the chorus that evokes The Village People’s Y.M.C.A. Released as the ninth single from the LP in August 2023, it went to #9 on the Billboard Hot 100 Singles chart and has been certified Gold by the Recording Industry Association of America (RIAA). A hilarious high-camp video for the song was filmed around Springfield, MO, close to where Roan grew up. Personnel on the record were: Chappell Roan (lead, backing vocals), Dan Nigro (backing vocals, bass, guitar, programming, keyboards, drums), Sam Stewart (guitar), and Sterling Laws (drums).
The Rise and Fall of a Midwest Princess was recorded in 2018-23 at various studios in the U.S. under the guidance of producer and Amusement label owner Dan Nigro. Produced by Nigro, Ryan Linvill and Mike Wise, the album was released in September 2023. It went to #2 on the Billboard 200 Albums chart and has been certified Gold by the RIAA. Nine singles were released from the LP.
Chappell Roan (Kayleigh Rose Amstutz) is an American singer and songwriter. Working with producer Dan Nigro, her music is inspired by synth-pop from the 1980s. After her music videos gained popularity on YouTube, she began playing in New York City showcasing for labels. She signed with Atlantic Records in 2015, and released an EP, School Night, on Atlantic in September 2017. She has released one studio album, one EP and 14 singles. Her single, “Good Luck, Babe,” released in April 2024, went to #6 on the Billboard Hot 100 Singles chart. She continues to record and perform.
