Natural Gas Liquids

Ethane continues to lead net petchem margins in July, while propane has more than tripled from a year ago and natural gasoline remains negative.

EQT’s $77 million purchase of Blackline Midstream gives the Appalachian producer direct control of New England’s largest bulk-propane storage network.

A sizable U.S. propane build lifted total stocks to nearly 100 MMbbl and pushed PADD 3 inventories to a record high.

The frac spread edged lower in July but remains about 20% above year-ago levels, with propane and natural gasoline continuing to provide the largest contributions.

The ethane ratio-to-natural gas has been on a wild ride during 2026. In late January when the price of natural gas soared in response to Winter Storm Fern, the ethane-to-gas ratio was crushed to the lowest level in at least 20 years. 

U.S. propane production has trended lower since early May, while the margin above the previous five-year maximum for inventories has continued to narrow despite another inventory build.

The U.S. ethane-to-Henry Hub ratio climbed for a third straight month in July, averaging 111% so far and remaining modestly above the same month last year.

Although the emergency Jones Act waiver issued in March 2026 generated considerable attention, it has had minimal impact on the U.S. LPG/propane market. Based on MARAD voyage reports, only three propane cargoes moved under the waiver, totaling approximately 540 Mbbl.

U.S. propane inventories posted a counter-seasonal draw during the week ended July 3, well below industry expectations. The decline was centered in PADD 3, where inventories recorded their largest same-week draw.