U.S. exports of propane reached records in the first half of 2026

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U.S. propane exports increased to 2 million barrels per day (b/d) in the first half of 2026, 11% more than during the same period in 2025. Increased U.S. propane production and changing trade flows, particularly increased exports to India and other countries in South Asia, drove propane exports to a record high of 2.1 million b/d in April 2026. Since then, total propane exports, including exports to India, have continued at levels well above the five-year average.

Record U.S. propane production has supported the rise in propane exports. Propane production, which is a byproduct of natural gas processing and crude oil refining, has increased rapidly over the past 10 years as U.S. natural gas output has grown. Higher propane production has led to lower U.S. propane prices relative to Asia, underpinning the record export levels.

Propane is consumed globally in the residential and commercial sectors for space heating and other uses. It’s also used as a petrochemical feedstock to produce propylene and ethylene, key feedstocks in plastic production.

U.S. propane exports surpassed 2 million b/d in April 2026 for the first time, driven by increased demand for petrochemicals and for importers seeking supplies to replace disrupted shipments from the Middle East. Favorable prices for U.S. propane exports also outpaced competition in other regions. An expansion project by Enterprise, expected to be completed this year at the Houston Ship Channel and Nederland terminals, will increase capacity by another 300,000 b/d.

While U.S. exports for propane have increased, trade flows have changed. In February 2025, China imposed a 10% tariff on propane imports from the United States, which decreased demand for U.S. exports of propane. China’s tariffs on U.S. propane rose to 125% for the month of April 2025 before falling and remaining at 10% since May 2025. U.S. exports of propane to China were down 28% in 2025, compared with 2024. In the first half of 2026, U.S. propane exports to China fell by 19% compared with January to June 2025.

Continued growth in propane exports could be constrained by export capacity limitations. In addition to these capacity limitations, ongoing drought conditions at the Panama Canal related to the El Niño weather effect are also curtailing current propane exports. Low water levels at the Panama Canal limit the number of ships that can transit the canal daily and increase the effective costs associated with the canal’s use. For propane exports that pass through the canal, these costs must be absorbed by buyers and sellers and could hinder U.S. propane exports.

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