Propane exports hit record 2.1M b/d in April, EIA says
US propane exports averaged 2 million b/d in the first half of 2026, up 11%, with a record 2.1 million b/d in April as India demand grew and China's fell.
| Item | Figure |
|---|---|
| US propane exports, 1H 2026 | 2.0M b/d (+11% y/y) |
| Monthly record, April 2026 | 2.1M b/d |
| Exports to China, 1H 2026 vs 1H 2025 | -19% |
| Exports to China, 2025 vs 2024 | -28% |
| China tariff on US propane since May 2025 | 10% |
| Enterprise terminal expansion due this year | +300,000 b/d |
WASHINGTON - U.S. propane exports set records in the first half of 2026, according to an Oct. 1 analysis by the Energy Information Administration. Shipments averaged 2 million barrels per day, 11% more than in the same period of 2025, and passed 2 million b/d for the first time in April, reaching 2.1 million b/d.
Commodity prices and trade flows
EIA attributes the gain to record domestic production and shifting trade routes. Propane is a byproduct of natural gas processing and crude oil refining, and output has risen rapidly over the past 10 years as U.S. gas production has grown. The resulting supply has kept U.S. propane prices low relative to Asian prices, which supports exports. Shipments to India and other South Asian countries have grown, and exports have stayed well above the five-year average since April.
April demand also reflected petrochemical buyers and importers replacing disrupted shipments from the Middle East, EIA said. Propane is used for heating and as feedstock for propylene and ethylene, which are building blocks for plastics.
China tariffs
China imposed a 10% tariff on U.S. propane in February 2025, raised to 125% for April 2025, then returned to 10% from May 2025, where it remains. U.S. exports to China fell 28% in 2025 from 2024 and 19% in the first half of 2026 from the same months of 2025.
What the record means
Propane’s trade picture has two moving parts: more supply at home and new buyers abroad. The Asian price premium, helped by cheaper U.S. supply, made exports attractive even as sales to China shrank under the tariff. The net result was still a record, which shows how much volume other markets, particularly South Asia, absorbed.
Limits on further growth
EIA said additional growth could be limited by export capacity. An Enterprise expansion at the Houston Ship Channel and Nederland terminals, due for completion this year, would add 300,000 b/d. Drought at the Panama Canal, linked to El Nino, is also holding down shipments. Low water limits the number of ships that can transit each day and raises costs, which buyers and sellers must absorb.
Prepared with AI assistance from public sources and reviewed under our editorial policy. Not investment advice.
