Wet Gas, NGLs/LPGs & Petchems

Enterprise Products Partners reported Q3 adjusted EBITDA of $2.8 billion, up 16% YoY on record Permian gas processing volumes of 4.6 Bcf/d and NGL pipeline throughput. The company raised its 2025-2030 Permian wet gas and NGL production growth forecast to 34% from 23% due to higher gas-to-oil ratios. Its fully contracted 300 Mb/d Houston Ship Channel LPG export expansion is in commissioning and due online by year-end, lifting total capacity to 1.1 MMb/d and supporting higher 2027 export volumes. Read →

EIA data showed a 111 Mbbl draw in US propane/propylene inventories for the week ended Oct 23, bringing stocks to 105.7 MMbbl. Exports averaging 2.15 MMb/d since early September have erased nearly all of the prior 12.8 MMbbl surplus versus last year. The tight balance leaves limited buffer heading into heating season, especially in the Midwest. Read →

ONEOK reported Q3 adjusted EBITDA of $2.24 billion, up 6% YoY, and raised full-year 2026 guidance to $8.5-8.6 billion. Gulf Coast/Permian NGL raw-feed throughput rose 16% YoY. The company increased its 2026 capex budget to about $3.5 billion to capture growth from the recent Brazos Midstream acquisition and organic projects. Read →

ONEOK reported Q3 adjusted EBITDA of $2.24B, up 6% YoY, driven by 6% higher NGL raw feed throughput including 16% growth in Gulf Coast/Permian. The company raised full-year 2026 adjusted EBITDA guidance to $8.5-8.6B midpoint on strong volumes and the Brazos acquisition, underscoring robust midstream demand for NGL handling from wellhead to fractionation and export. Read →

Panama Canal Authority restrictions from low water levels have reduced Neopanamax and Panamax transits, forcing more VLGCs on longer Cape of Good Hope routes for USGC-to-Asia LPG cargoes. The constraints coincide with Asian buyers shifting toward US supplies amid Middle East disruptions, sustaining upward pressure on VLGC freight and delivered prices in East Asia. Read →

MPLX declared a Q3 distribution of $1.2111 per unit, up 12.5% sequentially to a $4.84 annualized rate. The increase reflects the partnership's exposure to NGL gathering, processing, fractionation and export infrastructure amid sustained Permian and Gulf Coast volume growth. Read →

Platts assessed USGC propane at multiyear highs on Oct. 22 with exports sustained above 2 MMb/d; Japan took 27% and China 17% of October loadings. EIA data released Oct. 21 showed propane/propylene stocks fell 0.5 MMbbl to 105.846 MMbbl, lowest since early August. Butane prices also reached highs since March 2022 with Conway-Enterprise spread widening sharply. Read →

Argus model shows ethane cracking margins at 9.5¢/lb after heavy forward ethylene sales for Nov-Dec delivery lowered spot prices to three-month lows. Mont Belvieu ethane cash costs hit seven-month highs near 27¢/gal while propane and butane margins turned negative. Ethane remains the cheapest feedstock despite the compression. Read →

Dorian LPG placed a $345 million order with Hanwha Ocean for three 90,000 m³ dual-fuel Panamax VLGCs scheduled for delivery in 2030. The vessels will burn LPG or low-sulphur fuel and feature energy-saving designs for better efficiency on US Gulf-Asia routes. The order supports fleet renewal amid firm VLGC earnings driven by longer US voyages and Panama Canal constraints. Read →

Permian NGL production growth continues to rely on fractionation, storage and export projects to reach global markets as domestic demand remains limited. The analysis examines how midstream expansions convert rising wet-gas output into LPG and ethane cargoes without creating new bottlenecks at Mont Belvieu. Read →

Targa Resources will surpass Enterprise Products as Mont Belvieu’s largest fractionator when its 150 Mb/d Train 12 starts in 1Q27, followed by Train 13 in 1Q28. The shift ends Enterprise’s six-and-a-half-year lead amid rising ethane export demand that is making fractionation capacity a key bottleneck. Chinese ethane demand growth and new VLEC deliveries support higher recovery economics. Read →

US waterborne ethane exports hit a record 580 Mb/d average in September, led by Enterprise Products’ new Neches River terminal near Beaumont. Cargoes to China reached 403 Mb/d, nearly 70% of the total, as Chinese buyers returned. Mont Belvieu ethane traded at $0.28/gal on Oct 22, up from the $0.20-0.22/gal range in August. Read →

US propane, ethane and butane exports held steady at 3.2 MMb/d in September with Asia taking the largest share. Europe imported 12 MMbbl of propane that month. FOB Gulf Coast premiums to Mont Belvieu more than doubled to 10.8 ¢/gal month-over-month per Platts data, lifting VLGC rates on Houston-Japan to 57.45 ¢/gal. Read →

US propane inventories dropped 3.8 MMbbl over three weeks, the steepest decline for the period in at least a decade, as exports pulled Gulf Coast stocks lower. The year-over-year surplus narrowed to 2.7 MMbbl and could vanish next week. Strong loadings at Gulf Coast terminals including Enterprise, Energy Transfer Nederland and Targa Galena Park drove the draw, tightening near-term balances ahead of winter. Read →

Kpler lowered its Q2 2026 Mont Belvieu propane outlook as US production exceeded expectations and US-China trade normalization remains unlikely before H2 2026. A new dock at Energy Transfer Nederland starting in early November boosted exports, but persistent tariffs on US cargoes to China keep pressure on USGC prices. The firm also trimmed its Far East propane outlook amid plentiful US supply and weak Japanese/Korean demand. Read →

NGL prices outpaced natural gas over the past month, lifting the frac spread to $7.80/MMBtu on Oct 19, a 36% increase from a month earlier. The move reflects stronger Mont Belvieu NGL values relative to Henry Hub, improving recovery economics for producers in Appalachia and the Permian. Read →

Targa announced long-term integrated midstream agreements with ExxonMobil subsidiaries covering gathering, processing, treating, NGL transportation and fractionation through 2046, plus acreage dedications in the Permian Delaware and Midland. The deals include three new Permian Delaware gas processing plants (Wrangler, Ranger, Ranger II) adding 825 MMcf/d capacity and the Bull Run II residue gas pipeline to Waha Hub, both slated for 1H 2028. This locks in Permian NGL volumes for Targa’s Mont Belvieu fractionation and export network amid rising ethane demand. Read →

Energy trader BGN ordered four 93,000 m3 LPG dual-fuel very large gas carriers from HD Hyundai Heavy Industries, with deliveries in January 2030. The deal brings BGN’s new dual-fuel VLGC contracts with the yard to 10 vessels this year and expands its owned LPG VLGC fleet from 19 to 23. The orders support growing US Gulf-to-Asia LPG and ethane export flows amid tight vessel availability and Panama Canal constraints. Read →

The $8.5 billion Golden Triangle Polymers ethane cracker JV between Chevron Phillips Chemical and QatarEnergy is preparing for startup by late December or early January, the first new US Gulf Coast ethane cracker in over four years. It will add 2.08 Mt/yr ethylene and 2 Mt/yr polyethylene capacity, boosting ethane feedstock demand at Mont Belvieu. The project underscores sustained confidence in US ethane economics despite prior delays from pandemic, inflation and trade issues. Read →

EIA data for the week ended Oct 9 showed total US propane/propylene stocks fell 1.5 MMbbl to 106.4 MMbbl, with the entire draw from PADD 3 (Gulf Coast) at 1.9 MMbbl. Midwest stocks slipped below the five-year average. The draw exceeded expectations and supports tighter near-term balances ahead of winter heating demand. Read →

US propane, ethane and butane exports held at 3.2 MMb/d in September with Asia taking the largest share. Europe imports of US propane rose sharply month-on-month. FOB Gulf Coast premiums to Mont Belvieu prices more than doubled to 10.8 ¢/gal, while VLGC rates on Houston-Japan strengthened. Read →

Targa’s 150 Mb/d Train 12 due online in 1Q27 will make it Mont Belvieu’s largest fractionator, ending Enterprise’s six-and-a-half-year lead. Rising ethane export demand is tightening fractionation capacity and driving the expansions. Read →

Enterprise’s ATEX ethane pipeline from Appalachia faces recontracting risk on 95 Mb/d of capacity in 2028 as tariffs exceed current Mont Belvieu ethane values near 30 ¢/gal. Strong utilization continues but legacy contracts create commercial pressure. Read →

Energy Transfer guided $5.0-5.5B 2026 capex focused on domestic gas expansions, Mustang Draw processing additions in the Permian and the Nederland Flexport NGL export expansion adding up to 250,000 bbl/d capacity. The company paused the Lake Charles LNG project citing global oversupply concerns, separating NGL export growth as a distinct fee-based track. Read →

Enterprise and peers are adding over 1 MMb/d of new US Gulf Coast LPG export capacity through 2028, including Neches River and expanded EHT projects. Enterprise SVP Tyler Cott noted the market will need time to absorb the capacity, likely leading to lower volatility and rates in terminal fees while supporting Asian petrochemical feedstock security. Read →

SK Gas’s VLGC G. Spirit paid a record $5.3M for a Panama Canal booking slot to move LPG from Houston Ship Channel to East Asia. The high fee reflects ongoing canal delays and strong demand for timely US LPG deliveries to China, South Korea and Japan amid tight scheduling. Read →

US ethane exports grew 12% year-over-year in 2025 despite mid-year China trade shocks, supported by Neches River terminal ramp and Chinese PDH demand recovery. Propane exports ended flat after early gains faded on trade uncertainty, highlighting ethane’s resilience as the lowest-cost petrochemical feedstock. Read →

ONEOK executives confirmed on an earnings call that the planned 400 Mb/d Texas City LPG export terminal with MPLX remains a high priority long-term project. The company is seeing strong contracting interest for capacity on the terminal, which is slated for early 2028 startup and would add significant Gulf Coast LPG export optionality. Short-term focus is on Magellan acquisition synergies and Permian NGL expansions. Read →

ONEOK Chief Commercial Officer Sheridan Swords said the company is receiving substantial interest from customers wanting to contract capacity on its planned 400 Mb/d Texas City LPG export terminal. The project includes a new 24-inch pipeline from Mont Belvieu storage and targets low-ethane propane and normal butane loadings. Location near open water is cited as a key competitive advantage for reducing logistics risk. Read →

Targa announced 20-year fee-based agreements with ExxonMobil extending through 2046, adding NGL dedications for transportation and fractionation across Permian Delaware and Midland basins plus three new Delaware gas processing plants totaling 825 MMcf/d due online 1H28. Targa will also build the Bull Run II gas pipeline to Waha. The deals lock in long-term Permian NGL supply for Mont Belvieu fractionation and exports. Read →

Kpler data show US ethane exports hit a new record of 814,000 b/d in August, up from 620,000 b/d in July. Shipments to China totaled 618,000 b/d amid higher regional ethylene capacity and naphtha prices. Enterprise Morgan’s Point loaded a record 332,000 b/d while Energy Transfer Nederland shipped 217,000 b/d. Read →

Saudi Aramco suspended LPG exports from its Juaymah terminal after structural damage to propane and butane delivery systems. Deliveries scheduled for coming weeks were cancelled while the company evaluates scope and impact. The outage affects a key supply point for buyers in Japan, Korea and India. Read →

ONEOK and MPLX formed a 50/50 JV, Texas City Logistics, to build a 400,000 b/d LPG export terminal in Texas City, Texas, plus a 24-inch pipeline from ONEOK's Mont Belvieu storage to the terminal. The $1.4 billion terminal, slated for early 2028 startup with MPLX operating it, targets low-ethane propane and normal butane; each partner reserves 200 Mb/d. ONEOK will own 80% of the $350 million pipeline. The projects expand Gulf Coast export optionality for NGLs from Mont Belvieu and Permian sources. Read →

Energy Transfer announced expansion at its Nederland NGL Export Terminal, adding 240 Mb/d ethane export capacity (100% contracted long-term to 2040s) and 55 Mb/d LPG capacity. The project includes expanded Mont Belvieu-to-Nederland pipeline capacity, two new ship docks, and previously announced storage tank expansions (propane and butane tanks to 1.2 MMbbl and 0.8 MMbbl by 1H27). Phased startup begins 2028; total Nederland refrigerated NGL export capacity will exceed 1.25 MMb/d post-docks, lifting ET's system total to 1.7 MMb/d with Marcus Hook. Read →

Targa Resources announced the Speedway NGL Pipeline (initial 500 Mb/d, expandable to 1 MMb/d, 500 miles, $1.6 billion, in-service 3Q27) from Permian assets to Mont Belvieu, plus the Yeti gas processing plant (275 MMcf/d). Buffalo Run residue-gas interconnect is also advancing. These support Targa's wellhead-to-water strategy amid Permian volume growth and raise 2026 growth capex guidance; Speedway addresses near-capacity existing NGL takeaway while adding downstream fractionation and export flexibility. Read →

EIA data showed a larger-than-expected 1.8 MMbbl build in total U.S. propane/propylene stocks for the week ended Sept 25, reaching 109.6 MMbbl (record Gulf Coast PADD 3 at 70.4 MMbbl). The build followed a sharp export decline; inventories remain 17-19% above five-year averages heading into seasonal draw. Recent weeks saw rebounding exports pulling stocks lower from prior peaks, tightening the prompt market and supporting Mont Belvieu prices amid strong international demand. Read →

EIA data showed a larger-than-expected 1.8 MMbbl draw in U.S. propane/propylene inventories for the week ended Oct 2, dropping stocks to 107.8 MMbbl, mostly from PADD 3 Gulf Coast. Exports rebounded 795 Mb/d to 2.46 MMb/d, nearly reversing the prior week's decline. Stocks remain 17% above the five-year average heading into the seasonal draw period. Read →

Energy Transfer agreed to acquire Vaquero Midstream for about $2.625 billion in cash and stock to expand its Delaware Basin gas gathering and processing network. The deal adds a 300-mile pipeline system and the Caymus Processing Complex with 675 MMcf/d capacity, plus acreage for potential expansion to 1.2 Bcf/d. Assets connect to ET's existing NGL infrastructure, boosting volumes for fractionation, terminalling and export. Read →

US ethane cracking margins fell to 9.5¢/lb at end-September as higher ethylene output and weaker downstream demand pushed spot ethylene prices lower. Mont Belvieu EPC ethane reached 27¢/gal, the highest since January, while propane and butane margins turned negative. Ethane remains the most economic feedstock despite compressed margins under 10¢/lb. Read →

Energy Transfer plans further expansion at its Nederland LPG and ethane export facility on the Gulf Coast following record shipments. The company is also building a 3 MMbbl ethane storage cavern at Mont Belvieu due in 2027 and expanding Marcus Hook ethane capacity by 20 Mb/d. Enterprise, ET and Targa posted record NGL fractionation and pipeline volumes in Q1. Read →

US LPG cargoes are carrying higher butane shares as exports diversify away from northeast Asia, where propane has lost steam-cracker cost advantage to naphtha and PDH margins stay negative. Energy Transfer’s Nederland terminal leads butane sendout while Enterprise and Phillips 66 facilities gain share; propane exports lag due to poor Asian petrochemical demand and China tariff issues. Record PADD 3 propane inventories persist with terminals near capacity. Read →

Antero Resources reported its realized NGL premiums to Mont Belvieu halved in Q4 versus a year earlier amid lower propane prices averaging 65.90¢/USG. The Marcellus producer expects 213,000 b/d NGL output in 2026 including 80,000 b/d ethane and 125,000 b/d propane-plus, with ethane still commanding a premium to the hub. Read →

The medium-sized gas tanker Navigator Eclipse moored at Enterprise’s Neches River terminal near Beaumont, marking the first vessel arrival and commissioning of the new LPG-capable dock. The facility’s Phase 1 provides 120 Mb/d ethane capacity with Phase 2 adding flexible ethane/propane loading up to 360 Mb/d propane. The cargo is expected to head to China’s Satellite Chemical terminal, boosting Enterprise’s Gulf Coast LPG export flexibility amid strong Asian demand. Read →