May 2017, Vol. 244, No. 5

Features

Abundance of Natural Gas Drives Midstream Propane Terminals

It’s clear the propane market in the United States has been strongly influenced by the abundance of natural gas. According to Propane Resources, a Kansas City-based propane industry consultancy, the U.S. was importing about 100,000 bpd of propane 10 years ago; today, it’s an exporter of 1.1 MMbpd of propane. Why? A decade ago, 48% of propane in the U.S. was derived from natural gas; today, that number has jumped to 75%, due to the various ways of getting raw product out of the ground. That includes hydraulic fracturing, among other methods. True, a very warm 2016-17 winter affected propane, as did slightly lower natural gas production. Nevertheless, there is an abundance of propane in the

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