Wet Gas, NGLs/LPGs & Petchems

Saudi Aramco raised its October OSPs by $55/t to $680/t for propane and $70/t to $730/t for butane; Sonatrach lifted propane by $110/t to $670/t and butane by $140/t to $750/t. The moves, 9-23% higher, reflect rising oil prices and stronger global demand. Aramco OSPs benchmark Middle East LPG contracts to Asia-Pacific buyers. Read →

Targa will build the 500-mile, 500 Mb/d Speedway NGL pipeline from Permian plants to its Mont Belvieu complex, in service 3Q 2027 at $1.6B cost, expandable to 1,000 Mb/d. It also advances the 275 MMcf/d Yeti gas plant and Buffalo Run gas system. The projects support rising Permian NGL and gas output feeding fractionation and exports. Read →

US propane exports averaged 2 Mb/d in the first half of 2026, up 11% from the prior year and a record, driven by higher production and shifts to India and South Asia amid Middle East supply issues. April peaked at 2.1 Mb/d. Exports to China fell 19% in the period due to tariffs, while overall production growth from gas processing sustained the gains. Read →

Kpler lowered its Q2 2026 Mont Belvieu propane price outlook after US production exceeded expectations and US-China trade normalization remains unlikely before H2 2026. A new dock at Energy Transfer Nederland starting in November will add export capacity, but persistent tariffs and lack of talks cap near-term flows. The firm also trimmed its butane outlook amid strong US supply and upcoming Middle East volumes. Read →

Saudi Aramco lifted its October 2026 contract price for propane to $680 per metric ton, up $55 from September, and butane to $730/MT, up $70. The increases reflect tighter global balances and Aramco’s effort to defend market share in India and China against US supply. Higher Middle East benchmarks support netbacks for US Gulf cargoes. Read →

VLGC freight ex-US hit fresh highs with fixtures above prior levels amid tight vessel availability and strong arbitrage economics. BLPG3 Houston-Chiba rose $32.71 to $320.71/mt while Houston-Flushing gained $15.50 week-on-week. Limited prompt October vessels and continued cargo demand from Asia underpin elevated rates supporting US LPG export economics. Read →

US LPG export slates contain rising butane shares, with cargoes heading to Southeast Asia, the Mediterranean and Africa as buyers favor mixed loads. Energy Transfer Nederland dominates butane exports while Enterprise Houston and Phillips 66 Freeport gain share; expansions at Enterprise (660 kb/d combined) and ET (150 kb/d) support the shift. Propane exports lag as Northeast Asia (Japan/South Korea) demand weakens due to poor PDH and steam-cracker margins, keeping Mont Belvieu propane 30 ¢/gal below year-ago levels. Read →

US LPG arrivals into China hit 630 kbd in July and 530 kbd in August 2026, exceeding five-year seasonal averages and recovering toward pre-2025 trade-war levels despite an 11% duty. Buyers increasingly use bonded storage and processing-trade declarations (covering 28% of US-origin propane Jan-Jul 2026) to defer or avoid duties, supporting PDH feedstock needs amid Middle East supply shortfalls. Panama Canal constraints and Hormuz tensions are pushing more cargoes via Cape routes, with transit costs easing recently. Read →

The EIA reported a 1.2 MMbbl U.S. propane/propylene inventory draw for the week ended September 18, concentrated in PADD 3 and tied to higher reported exports. Gulf Coast stocks fell 1.2 MMbbl to 68.4 MMbbl. The draw supports Mont Belvieu pricing amid strong export flows. Read →

Energy Transfer will expand its Nederland NGL Export Terminal by 240,000 b/d ethane and 55,000 b/d LPG capacity, with 100% of the new ethane volume already under long-term contracts to 2040s. The project includes added Mont Belvieu-to-Nederland pipeline capacity and two new ship docks, phasing in from 2028. Combined with Marcus Hook, ET's total NGL export capacity will reach 1.7 MMb/d. Read →

FERC data show ATEX ethane throughput hit 218 Mb/d in 3Q25, up 107% from 2Q25 and above 190 Mb/d nameplate. Enterprise’s Neches River Phase 1 startup in mid-July near Beaumont pulled Appalachian ethane south into Gulf Coast export capacity, with cargoes ramping quickly in September. The integrated EPD system also captured some Northeast volumes displaced by the Shell Monaca cracker outage. Read →

Targa declared force majeure March 18 at Galena Park after a low-ethane propane unit failure requiring full compressor skid replacement, slowing loadings at a terminal handling nearly 20% of US LPG exports. The outage risks stranding barrels at Mont Belvieu, pressuring local prices while international benchmarks stay firm and widening arbitrage for Enterprise and Energy Transfer to capture displaced propane volumes. Read →

EIA daily spot price reached $0.864/gal on Sep 22, up from $0.853 prior week and 22.9% above the 5-year median. The benchmark reflects FOB Mont Belvieu values amid ongoing export loadings and a counterseasonal inventory draw reported in the Sep 18 EIA weekly data (US propane/propylene stocks at 107.87 MMbbl, down 1.22 MMbbl w/w). Read →

EIA Weekly Petroleum Status Report for week ended Sep 18 shows US propane/propylene inventories drew 1.22 MMbbl to 107.87 MMbbl, with PADD 3 (Gulf Coast) down to 68.434 MMbbl. The draw aligns with continued export growth and supports firmer Mont Belvieu pricing ahead of the heating season. Read →

Beijing raised retaliatory tariffs on US propane to 84%, threatening over 30 Chinese PDH plants that rely on US LPG for propylene production. Industry sources expect utilization to drop below 50% and demand to fall by at least 500,000 metric tons monthly, pressuring US Gulf Coast export economics and Mont Belvieu prices. Read →

Dorian LPG completed its fifth VLGC sale, generating over $400m, as spot VLGC earnings remain elevated due to Panama Canal transit limits and strong LPG arbitrage. Persistent dry conditions and reduced canal capacity are expected to keep freight rates high into 2027, supporting delivered Asian prices for US cargoes. Read →

OPIS data shows Mont Belvieu non-TET propane averaging 80.83¢/gal month-to-date vs. 73.52¢/gal at Conway as of Sep 18, widening the north-south spread. Strong US Gulf Coast exports and subdued Midwest heating demand keep Conway subdued. Forward curves project the discount narrowing only modestly into winter. Read →

U.S. propane inventories posted a counterseasonal 1.4-MMbbl draw for the week ending Sep 11. Stocks remain historically high but continued draws could quickly narrow the surplus ahead of the winter heating season. The move supports Mont Belvieu prices amid strong export and petrochemical pull. Read →

MPLX agreed to sell its Rockies G&P assets in the Green River and Uinta basins to Harvest Midstream for $1.0B cash but will retain control of associated NGLs via a 12 Mb/d dedication starting 2028. The deal right-sizes MPLX's portfolio as it pursues an NGL export strategy on the Gulf Coast through its ONEOK JV. Retained NGLs will flow via Enterprise's MAPL pipeline for fractionation and export. Read →

The Golden Triangle Polymers ethane cracker JV (CPChem 51%, QatarEnergy 49%) in Orange, TX has been delayed by at least six months and is now expected to start up in 2027 versus prior 1H26 target. The 2 Mtpa ethane cracker plus two 1 Mtpa HDPE units will consume roughly 110 Mb/d of ethane once online. The delay extends the period of excess ethane supply in 2H26, likely softening Mont Belvieu prices and delaying support into 2027. Read →

US propane/propylene inventories fell 1.4 MMbbl in the latest EIA week, a counterseasonal draw that trims the record surplus. Stocks remain historically high but continued draws or sub-normal builds could tighten balances ahead of winter heating demand. The move reflects stronger export pull and product supplied outpacing seasonal norms. Read →

Wolf Midstream reached final investment decision on Phase Three of its NGL North system, adding 0.6 Bcf/d of gas processing and lifting NGL capacity to 110,000 bpd including over 80,000 bpd ethane. The expansion includes a third de-ethanizer, unit-train rail terminal ramp to 60,000 bpd, and cogeneration; most output is backed by long-term fixed-fee contracts with investment-grade counterparties and is slated for 2027 service. Read →

Wolf Midstream announced FID on a $500 million Phase Three expansion of its proprietary NGL North system in Alberta with CPP Investments backing. The project boosts processing by 0.6 Bcf/d, adds de-ethanization and rail loading capacity, and targets 110,000 bpd NGL output (80,000+ bpd ethane) under mostly contracted fixed-fee terms; core construction is already underway with phased online dates from late 2026 into 2028. Read →

EIA data for the week ending Sep 11 shows US propane and propylene primary stocks at 109.1 million barrels, down from the prior week and 10.3% above the five-year median. The decline aligns with the counterseasonal draw reported by RBN, signaling early erosion of the elevated inventory position built through summer. Read →

Enterprise Products’ new Neches River terminal near Beaumont ramped ethane cargoes to nearly 59 Mb/d in September, more than doubling August levels and pushing total US waterborne ethane exports to a record 580 Mb/d average. Chinese buyers accounted for 70% of the volume, supporting firmer Mont Belvieu ethane prices. The surge signals stronger ethane recovery economics and export demand from the Permian and Appalachia. Read →

Kpler lowered its Mont Belvieu and Northwest Europe propane price outlook starting Q2 2026 due to stronger-than-expected US production and postponed US-China normalization. Butane outlook saw smaller cuts amid solid export and blending demand. The report notes ample US supply will pressure Western prices while East of Suez sees weaker propane demand in Japan and Korea. Read →

US propane/propylene inventories continued seasonal builds, reaching levels well above year-ago and five-year averages per the latest Weekly Petroleum Status Report data through early September. Gulf Coast (PADD 3) stocks rose notably, supported by strong production and exports. Exports remained elevated while domestic balances lengthened, consistent with oversupply signals in NGL markets. Read →

Saudi Aramco suspended LPG exports from its Juaymah terminal following structural damage to propane and butane delivery systems on Feb 23. Cargoes scheduled for coming weeks were cancelled while repairs continue. The outage tightens Middle East supply, supporting US Gulf Coast export margins and Mont Belvieu prices. Read →

Clariant was awarded the catalyst and HGM supply contract by Zhejiang Petroleum & Chemical (ZPC) for the world’s largest licensed propane dehydrogenation unit (1.2 million metric tons per annum propylene capacity) in Zhejiang Province, China. The CATOFIN technology from Clariant and Lummus will convert propane feedstock, supported by ZPC’s upstream refinery expansions, into high-value petrochemical derivatives. This marks another major win for CATOFIN, underscoring strong Asian PDH demand for US-origin propane amid global propylene needs. Read →

Dow is considering exiting its 35% stake in the $20 billion Sadara Chemical Co. joint venture with Saudi Aramco in Jubail, Saudi Arabia, as part of portfolio reshaping amid a prolonged petrochemical downturn. The complex produces over 3 million metric tons per year of chemicals and plastics; Dow reported a negative $793 million investment balance as of June 30 and suspended loss recognition in Q1 2026. Aramco could acquire the stake or other investors could bid, with no final decision yet; the move aligns with Dow’s broader cost-cutting and non-core asset reviews. Read →

India’s Haldia Petrochemicals is retrofitting its 700 ktpa ethylene naphtha cracker with Lummus technology to enable up to 30% LPG substitution as a hedge against Middle East supply disruptions from the US-Iran conflict. The company, which has term naphtha contracts with QatarEnergy, KPC and ADNOC, turned to spot cargoes after Hormuz shipments stalled and plans domestic LPG sourcing from IPPL plus imports from all available origins. The shift highlights Asian petchem operators’ move toward flexible LPG feedstock amid naphtha tightness and supports incremental US propane demand. Read →