Executive Summary:
Infrastructure: Enterprise Products’ Neches River Terminal Phase 2 expansion is rapidly reshaping the US propane market balance.
Exports: NGL exports fell 2.3% W-o-W for the week ending May 22 as declines in ethane exports outweighed modest LPG export growth.
Rigs: The total US rig count held flat the week of May 16 at 552 rigs. Liquids-driven basins increased W-o-W from 422 to 425.
Infrastructure:
Enterprise Products’ (EPD) Neches River Terminal Phase 2 is rapidly reshaping the US propane market balance. Since commissioning, 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 Analytics estimates recent propane export volumes from Neches River have averaged roughly 140 Mb/d.
The stronger export pull has materially tightened our propane balance outlook. Earlier concerns surrounding record propane inventories have eased as accelerating export demand drives stronger storage draws through the second half of 2026. East Daley now expects 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 signaling confidence in long-term NGL export demand growth. EPD and Energy Transfer (ET) both highlighted strong export demand trends during recent earnings discussions, while infrastructure across the Gulf Coast continues expanding to support higher export volumes.
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.
Exports:
NGL exports fell 2.3% W-o-W for the week ending May 22 as declines in ethane exports outweighed modest LPG export growth.
LPG exports increased 2.6% W-o-W, supported by stronger volumes from Targa’s Galena Park (+33.2%) and Energy Transfer’s Nederland (+10.0%) terminals, partially offset by a sharp decline at ET Marcus Hook (-51.2%).
Ethane exports fell 16.0% W-o-W as large declines at Enterprise’s Morgan’s Point (-48.8%) and ET Marcus Hook (-67.6%) outweighed a rebound at EPD Neches River (+118.6%). The Neches River terminal continued ramping ethane volumes higher following recent export disruptions, highlighting the terminal’s growing role in supporting Gulf Coast export capacity.
Rigs:
The total US rig count gained 4 rigs to 552 for the week of May 10. Liquids-driven basins added 3 rigs W-o-W to 425.
- Bakken (+1): Devon Energy
- Permian
- Delaware (-1): Exxon
- Midland (+1): SM Energy
- Eagle Ford (+2): EOG Resources, Magnolia Oil & Gas
