Enterprise Products’ (EPD) Neches River Terminal Phase 2 is rapidly reshaping the US propane market balance, exporting product at a much faster clip than East Daley Analytics had expected.
Since commissioning in April, propane exports from the terminal have ramped sharply as global buyers increasingly pull US barrels to offset supply disruptions and geopolitical risks tied to the Persian Gulf.
East Daley estimates recent propane export volumes from Neches River have averaged roughly 140 Mb/d. That pace is running well ahead of our prior forecast. Propane exports from Phase 2 ramped one month ahead of our expectations, and reached the high-case upper bound of 140 Mb/d two months earlier than we forecasted (see table at right).
The stronger export pull has materially tightened our propane balance in the NGL Hub Model. Earlier concerns surrounding record propane inventories have eased as accelerating export demand drives stronger storage draws through the second half of 2026. We now expect propane inventories to normalize back within the 5-year range beginning in July, while remaining modestly above the 5-year average through winter.
Midstream operators continue to signal confidence in long-term NGL export demand growth. Enterprise Products (EPD) and Energy Transfer (ET) both highlighted strong export demand trends during recent earnings discussions, while operators continue to expand infrastructure across the Gulf Coast to support higher export volumes.
See East Daley’s NGL Hub Model for more detail. The broader implication is clear: Gulf Coast LPG export infrastructure is becoming one of the most important balancing mechanisms for the global propane market. As additional export capacity enters service, US propane balances will likely become increasingly sensitive to international trade flows, shipping economics, and geopolitical disruptions tied to global energy markets. – Julian Renton Tickers: EPD, ET.
Download Part II of East Daley’s Permian Basin White Paper Series
The Permian Basin’s next big buildout is already taking shape, but this time the driver isn’t crude oil. In The Permian Basin at a Crossroads: Why This Pipeline Boom is Different, East Daley Analytics’ latest white paper reveals how gas demand from AI data centers, utilities and LNG exports is rewriting the midstream playbook in the leading US basin. Over 10 Bcf/d of new capacity and $12 billion in investments are reshaping flows, turning the Permian into a gas powerhouse even as rigs decline. Read Part II: Why This Pipeline Boom is Different
The Daley Note
Subscribe to The Daley Note for energy insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.