Executive Summary:
Infrastructure: Less than a month after startup, Enterprise Products is testing the limits of the expanded Neches River export terminal.
Exports: NGL exports declined 4.7% W-o-W for the week ending June 12, with strong growth in ethane offset by a decline in LGP exports.
Rigs: The total US rig count decreased by 3 rigs to 561 for the week of June 6. Liquids-driven basins declined from 436 to 434 rigs.
Infrastructure:
Less than a month after startup, Enterprise Products (EPD) is already testing the limits of the expanded Neches River export terminal near Beaumont, TX.
Neches River exported 329 Mb/d of ethane during the week ending June 12, according to Vortexa ship-tracking data, exceeding the terminal’s nameplate capacity of 300 Mb/d following a recent expansion.
The Phase 2 expansion entered service in May, aligning with EPD’s original target for a 1H26 startup. The project added 180 Mb/d of flexible export capacity that can swing between ethane and LPG service, depending on market dynamics. Neches River can now export up to 360 Mb/d of propane or 300 Mb/d of ethane.
The timing of the ramp is notable. Enterprise is fully contracted on ethane, according to its 2025 10-K. However, EPD executives previously said the Phase 2 expansion would initially focus on propane exports, with ethane shipments to climb by year-end. Instead, ethane volumes are already approaching the limits of the terminal’s expanded capacity only weeks after startup.
The performance highlights the strength of global demand for US ethane, with buyers prepared to utilize the additional capacity immediately upon startup. The rapid ramp reinforces the view that export infrastructure has been the primary bottleneck to further growth in US ethane exports.
The strong showing at Neches River could support plans by other midstream companies to expand existing export facilities or construct new infrastructure to alleviate export constraints.
Exports:
NGL exports declined 4.7% W-o-W for the week ending June 12. Strong growth in ethane exports was offset by a decline in LGP exports
LPG exports fell 13.5% W-o-W, led by declines at EPD Neches River (-74.2%) and PSX Freeport (-38.2%).
Ethane exports rallied behind a substantial increase at Neches River (+269.5%), where volumes climbed 240 Mb/d (see related story at top). Ethane exports declined at other terminals W-o-W.
Rigs:
The total US rig count decreased by 3 rigs to 561 for the week of June 6. Liquids-driven basins declined from 436 to 434 rigs.
- Anadarko (+2): Freedom Operating Co., McGinnness Energy
- Eagle Ford (+1): Devon Energy
- Permian (-4)
- Delaware (-1): BP
- Midland (-3): Permian Resources, BlackBeard Operating, Burk RoyaltyUinta (-1): FourPoint Energy, LLC
- Uinta (-1): FourPoint Energy
