| Ethane |
14.85
0.19
|
|---|---|
| Propane |
-4.87
0.73
|
| N. Gasoline |
-23.85
-0.61
|
| Butane |
-29.97
1.46
|
| Last updated: October 22, 2026 09:43 | |
Petchem Margins
As we described in the Let’s Get Crackin' series, there are no more important relationships in NGL markets than the margins for NGLs used in olefin crackers for the manufacture of ethylene, propylene and other petrochemicals. The petrochemical sector makes up more than half of the demand for all NGLs. For ethane, the sector is 100% of the market. About one-third of propane goes to the petchems (historically with higher volumes going to the petchems in the summer), and some butane and natural gasoline. In Let’s Get Crackin' we explained the fundamental fact of feedstock acquisition of the ethylene cracker industry: the best feedstock is the one that will produce the highest margin possible, after deducting byproduct credits. In this graph we show those margins for ethane and propane based on ‘typical’ U.S. Gulf Coast olefin cracker product yields.
Related Articles
Canadian LPG Stocks Drop, Exiting September Below Normal Levels
Western Canada saw large drops in LPG inventories in September, especially butanes, according to data released by the Canadian Energy Regulator on October 15.
Exports Let the Air Out of U.S. Propane’s Cushion Early
U.S. propane inventories have fallen 3.8 MMbbl in three weeks, the steepest decline for this period in at least a decade, as strong exports pull Gulf Coast stocks lower. The surplus to last year has shrunk to 2.7 MMbbl and could disappear as soon as next week.
Frac Spread Shifts Into High Gear in October
NGL prices pulled further ahead of natural gas over the past month, pushing the frac spread to $7.80/MMBtu on October 19, up 36% from a month earlier.
Gulf Coast Turns Down the Volume as U.S. Propane Stocks Roll Lower
U.S. propane inventories posted a second straight draw, led by a 1.9-MMbbl decline on the Gulf Coast. Total stocks remain 14% above the five-year average, but the surplus sits entirely in PADD 3, while Midwest stocks have slipped below the five-year average heading into winter.
U.S. Propane Exports Rock Back as Stocks Roll Lower
U.S. propane inventories posted a larger-than-expected draw as exports rebounded and Gulf Coast stocks pulled back from last week’s record high. Total inventories remain 17% above the five-year average heading into the seasonal draw period.
