The US relies on propane exports, particularly into China, to keep the market in balance as growing propane production on the back of natural gas drilling continues to add supply length. Weather-related logistical delays at US terminals seen in the summer of 2024 created a bottleneck of loadings into the international market, driving premiums for spot cargoes to record highs relative to in-well pricing at Mont Belvieu, Texas
Argus considers how new investments in additional LPG export capacity will curb the recent volatility seen in the US cargo market and provides historical insight into how previous infrastructure expansions affected netbacks for international LPG trade.
This insight paper evaluates:
- Recent trends in US LPG production growth.
- The arbitrage between Mont Belvieu, Texas, and the Argus Far East Index (AFEI).
- This year’s premiums for spot fob cargoes on the US Gulf coast and how new investments will drive them lower in the years ahead.
- China’s growing share of the US export market.
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About Argus Media
As a leading authority on energy and commodity markets across the globe, Argus is uniquely positioned to provide in-depth analysis and expert thought leadership. Our white papers are carefully written by Argus specialists from across our company. Each white paper focuses on a topical theme, exploring areas such supply and demand dynamics, price trends, trading activity and changing regulations. We always aim to provide a balanced view, underpinned by data and insight gathered first hand from the market.
