Executive Summary:
Infrastructure: Enterprise began service at the Neches River Terminal, marking a new phase in US ethane infrastructure.
Exports: ET’s new 250 Mb/d Flexport expansion operated at 96% ethane utilization for the week of Aug. 3-10, a sign of healthy ethane demand.
Rigs: The total US rig count increased during the week of July 27 to 538. Liquids-driven basins remained flat W-o-W at 404.
Flows: US natural gas volumes averaged 70.9 Bcf/d in pipeline samples for the week ending Aug. 3, up 0.5% W-o-W.
Infrastructure:
Enterprise Products (EPD) has started service at the Neches River Terminal near Beaumont, TX, marking the start of a new phase in US ethane infrastructure.
EPD commissioned the Neches River dock in mid-July, the company said in its 2Q25 earnings. The first LPG carrier anchored at the dock on July 23, according to ship-tracking firm Vortexa.
The terminal is being developed in two stages. Phase 1 brings 120 Mb/d of dedicated ethane export capacity online, while Phase 2 will add up to 180 Mb/d of flexible capacity that can swing between ethane and LPG service, depending on market dynamics. In total, Neches River could support up to 300 Mb/d of ethane or 360 Mb/d of LPG exports, expanding EPD’s total ethane-capable export footprint on the Gulf Coast to 540 Mb/d when combined with the Morgan’s Point terminal.
What sets Neches River apart is its feedstock flexibility. The dock can source ethane volumes from both the ATEX and AEGIS pipelines, giving EPD the ability to pull supply from the Northeast or from production hubs across the rest of the country. This dual connectivity creates optionality in ethane flow patterns and introduces a new lever for managing regional supply imbalances. Aside from Energy Transfer’s (ET) Marcus Hook terminal, East Daley’s NGL Network Model indicates this is the first meaningful path for incremental Northeast ethane to reach global markets since ATEX was completed.
East Daley’s ATEX forecast highlights that current throughput is well below the pipeline’s ~190 Mb/d nameplate capacity, with significant slack persisting across the forecast horizon. Meanwhile, our ethane recovery data shows the Northeast continues to reject large volumes of ethane into the gas stream due to limited local demand and export bottlenecks.
With Neches River online, we expect recovered ethane in the Northeast to rise over time. Producers with the most exposure include EQT, Antero Resources (AR), Coterra Energy (CTRA) and Expand Energy (EXE) — all of which operate on G&P systems showing high ethane yields and access to ATEX interconnects, according to asset data in Energy Data Studio.
The Neches River buildout also introduces a new layer of volatility for Gulf Coast petrochemical buyers. If EPD prioritizes barrels off AEGIS, local ethane supply will tighten, potentially lifting ethane prices at Mont Belvieu. The result is a commercial tug-of-war between Northeast producers pushing volumes down ATEX and Gulf Coast consumers seeking price stability. For EPD, the flexibility is a commercial advantage. For the broader market, it’s a new variable that could drive wider regional basis spreads and reward infrastructure with feedstock optionality.
EPD’s Neches River dock underscores a growing theme in East Daley’s NGL outlook: infrastructure flexibility matters more than headline capacity. In a world where geopolitics and trade policy are reshaping traditional flows, optionality is becoming the most valuable commodity of all.
Exports:
Total US exports rose 14% W-o-W, led by a 148% jump in ethane exports, partially offset by a 9.6% decline in LPG exports.
The surge in ethane was broad-based across all docks, with Nederland running at 440 Mb/d. East Daley estimates combined ethane export capacity from Nederland and Orbit at 450 Mb/d, the limit of the Orbit Ethane pipeline serving both facilities. This suggests ET’s new 250 Mb/d Flexport expansion operated at 96% ethane utilization for the week of Aug. 3-10, an important signal of healthy ethane demand.
Rigs:
The total US rig count increased during the week of July 27 to 538. Liquids-driven basins remained flat W-o-W at 404.
- Permian (-3):
- Delaware (-4): Devon Energy Corporation (-2), Chevron Corporation, Blackbeard Operating, LLC
- Midland (+1): SM Energy
- Anadarko (+1): Validus Energy II Midcon, LLC
- Denver Julesburg (+1): Occidental Petroleum
- Eagle Ford (+1): ConocoPhillips
Flows:
US natural gas volumes averaged 70.4 Bcf/d in pipeline samples for the week ending Aug. 10, down 0.7% W-o-W from 70.8 Bcf/d.
Gas basin samples declined 0.5% W-o-W to 43.9 Bcf/d. The Haynesville sample declined 1.3% to 10.7 Bcf/d, and the Marcellus+Utica slid 0.2% to 32.3 Bcf/d.
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