LPG in World Markets: Can US LPG Production Keep Up with Terminal Expansions?

This current feature was extracted from the latest edition of Poten’s LPG in World Markets, a monthly service published on March 2025.

Now that we are assured that US NGL export capacity expansions will be quite substantial by 2028 and maybe even more than what the market needs in the near term, the question is whether US production will grow fast enough to fill up the terminals when these capacities become available. NGLs production (by weight) in 2024 was quite robust, with LPG production rising by 6.3% (6 MMt) to 101 MMt; ethane production was up 6.7% (3.7 MMt) to 58.7 MMt and natural gasoline was up 9.4% (2.6 MMt) to 30.1 MMt, according to the US Energy Information Administration (EIA) data. Growth slowed down for all purity products from 2023, when production growth for LPG, ethane and natural gasoline was 7.9% (6.9 MMt), 10.3% (5.1 MMt), and 14.1% (3.4 MMt), respectively.

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