Propane shipped out of the United States reached a record 2.1 million barrels a day in April 2026, according to the U.S. Energy Information Administration, and that month was the first with exports above 2 million barrels a day. Exports have stayed well above their five-year average every month since.
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The EIA series behind the 2.1 million barrels a day
EIA reported the record in a Today in Energy article titled “U.S. exports of propane reached records in the first half of 2026,” published October 1, with Josh Eiermann as principal contributor. The underlying numbers come from the agency’s Petroleum Supply Monthly, and the monthly table is U.S. Exports of Crude Oil and Petroleum Products, where propane is listed under hydrocarbon gas liquids in thousand barrels per day. That table shows 2,093 for April 2026, which rounds to the 2.1 million figure, against 1,943 for March and 1,958 for June.
The record is a single month, and a barrel holds 42 U.S. gallons, so 2.1 million barrels a day is roughly 88 million gallons leaving American ports every day. The monthly series also shows how sharp the climb was from the prior month: March sat near 1.94 million barrels a day and April added about 150,000 more. For the first half of 2026 as a whole, EIA reports propane exports averaged 2 million barrels per day, 11% more than in the same period of 2025.
Why Asian buyers are pulling U.S. cargoes
Several shifts in trade routes explain the surge. Exports to India and other South Asian countries rose, changing the destination mix, and buyers looking to replace disrupted Middle East shipments sought U.S. cargoes. EIA also says lower U.S. prices relative to Asian prices have supported the record.
China moved the other way. A 10% tariff took effect in February 2025, climbed to 125% for April 2025, and returned to 10% from May 2025. Shipments to China fell 28% in 2025 compared with 2024, and fell another 19% in the first half of 2026 compared with the first half of 2025. The record therefore came despite a smaller Chinese market, which means other importers more than made up the difference. EIA’s article does not break out the destination volumes country by country, so the size of India’s gain is not given.
Supply is not the obvious constraint. EIA says U.S. propane production is at record levels, because propane is a byproduct of natural gas processing and crude oil refining and has grown over the past decade alongside natural gas output. The agency’s series on propane produced at natural gas plants shows 2,307 thousand barrels per day in 2025, with 1,396 of that, about 60%, in PADD 3, the Gulf Coast region. That series excludes refinery output, so it cannot be compared directly with export volumes.
Dock space and the Panama Canal set the next limit
Terminal capacity is the likelier ceiling. EIA says an Enterprise expansion at its Houston Ship Channel and Nederland terminals, expected to finish in 2026, adds about 300,000 barrels per day, and that export capacity limits could constrain further growth. Enterprise Products Partners did not repeat that capacity figure in its second-quarter 2026 earnings release, but the release shows the demand side: combined propane export volumes at its Morgan’s Point, Neches River and Enterprise Hydrocarbons terminals rose 141,000 barrels a day in the quarter against the second quarter of 2025. Enterprise’s total NGL marine terminal volumes set a record of 1.2 million barrels a day, up from 942,000 a year earlier.
A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner, said the expansion of the LPG export marine terminal on the Houston Ship Channel is the next major project scheduled for completion, expected to begin operations by year-end 2026. The release also notes that the second phase of the Neches River Terminal was completed in May 2026, and Teague said the partnership handled record pipeline and marine terminal volumes during the quarter. Those are one company’s volumes across several products, so they show the build-out under way rather than the national propane total.
The ocean route to Asia adds friction. EIA says drought tied to El Niño has reduced water levels in the Panama Canal, limiting daily transits and raising transit costs that buyers and sellers must absorb. The Panama Canal Authority’s August 20 advisory cut Panamax lock slots to 25 a day from August 21 and to 23 from September 1, and postponed planned increases in maximum draft at the larger Neopanamax locks.
June exports, at 1,958 thousand barrels a day, ran below the April peak while staying near the 2 million mark, which is consistent with a market pressing against its docks. The next Petroleum Supply Monthly is scheduled for October 30, and whether any later month beats 2,093 will depend on terminal throughput as much as on demand.
This article was produced with the assistance of AI and reviewed by Morning Overview editors prior to publication.
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